Wall Street Journal
January 2, 2017
On Wall Street, the rising dollar has been one of the most visible signals of growing optimism in the U.S. economy. For many other countries, it spells trouble.
Most analysts expect the U.S. currency to strengthen in 2017, extending a gain that has boosted the value of the dollar by more than one-third since the U.S. credit downgrade in 2011.
That expectation is mostly because a strengthening economy appears likely to enable the Federal Reserve to enact its plan for multiple rate increases in 2017. Higher rates make it more attractive to hold dollar-denominated assets, attracting money into the U.S.
“Right now, there is an incredible amount of pressure to sell just about every type of currency and buy the dollar,” said Christopher Stanton, chief investment officer at Sunrise Capital LP, which manages $700 million.
This article was posted: Monday, January 2, 2017 at 12:38 pm