The dollar strengthened its growth on Thursday after the publication of the minutes of the last meeting of the US Federal Reserve on Wednesday.
The dollar index on Wednesday reached 4.5-month highs, on Thursday it exceeded them and tested the maximum marks for 8.5 months.
The minutes indicated that the Fed's leaders will assess the prospects for curtailing stimulus programs at the next meetings, and the key level announced by the regulator in the leading indication for curtailing bond purchases may be reached this year.
Fed leaders at the end of the meeting last month made it clear that they are on the way to tightening monetary policy later this year, despite continuing disagreements over the exact timing of curtailing incentives for the economy, which has grown faster than expected this year.
The launch of the curtailment of monthly purchases of US government bonds and mortgage bonds in the amount of $ 120 billion may be announced during any of the three remaining Fed meetings this year.
Managers also need to think about the pace of curtailing purchases. During the previous program, which ended in 2014, the Fed reduced purchases in equal parts for 10 months. Several Fed officials said they would prefer to speed up this process, since the economy is approaching its targets more rapidly this time.
The euro is on the verge of breaking new lows against major currencies. Its position remains precarious amid the prospect of prolonged monetary stimulus from the European Central Bank.
Bank of America expects a significant increase in the dollar exchange rate in the second half of the year, citing "historically exceptional" market and economic conditions.
HSBC has changed its forecast of the dollar exchange rate for this year and now expects that the US currency will strengthen against most major currencies, rather than weaken. The Bank cites the achievement of a peak in the dynamics of global economic growth and the Fed's move to normalize monetary policy as reasons for revising its views.
"We should not be surprised if the dollar's growth momentum continues and will gain strength even in the first quarter of 2022. In 2014, the last time in a similar situation, DXY added 25% before moving from growth to sideways. It is difficult to expect such movements this time, but a return to the peak values of recent years in the region of 104 should be considered a completely working scenario