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US dollar strength perseveres as Fed’s inflation concerns persist: Bank of Singapore

Bryan Wu
Bryan Wu8/26/2022 03:06 PM GMT+08  • 3 min read
US dollar strength perseveres as Fed’s inflation concerns persist: Bank of Singapore
Fed officials, alarmed at the prospect of looser financial conditions, are pushing back against the view of a 2023 easing cycle
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The US dollar is likely to continue in strength until the US Federal Reserve (Fed) pivots and concerns about European energy security and slowdown in Chinese activity ease, says Bank of Singapore’s currency strategist Sim Moh Siong.

In a report dated Aug 26, Sim says that hopes of a “dovish” Fed pivot have waned, with Fed officials alarmed at the prospect of looser financial conditions, continuing to “push back” against the view of a 2023 easing cycle.

“For the US dollar to start weakening, we need the Fed to be more concerned about growth than inflation, and we are far from being there yet,” he writes.

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