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Dollar starts 2026 second half strong

Dollar starts 2026 second half strong

The dollar began the second half of 2026 with a 3% increase, supported by expectations of a US interest rate hike and the strength of the US economy. It reached its highest levels against the yen in 40 years and is close to its highest point of the year against the euro. Analysts expect the Federal Reserve to raise interest rates at least once more this year, as inflation remains above the target. Additionally, the strong dollar is leading to declines in emerging market currencies, such as the Korean won, which hit its lowest ever level, while markets like India are trying to support their currencies.

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