What’s behind the dollar’s slide?

The US dollar has slid against other major currencies since its peak on 20th January. This has been due to higher commodity prices, greater appetite for safe havens and a scaling back of expectations for tighter Fed policy. Nonetheless, we still expect the US dollar to recover through the end of next year as commodity prices fail to surge, the demand for safe havens wanes andthe federal funds rate is raised by more than investors assume.

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