Why Some Analysts Predict a Multi-Year Rally for the US Dollar

The dollar is in the middle of a rally that could extend for years, bolstered by a strong macroeconomic picture and invigorated by the recent downgrade of the US’s credit rating by Fitch Ratings.

That’s according to FxPro senior market analyst Alex Kuptsikevich, who notes that the Dollar Index — which measures the strength of the buck against a basket of rival currencies — is hovering just above 102.6 early Thursday, well below its one-year high of 114.11. The rally began in the middle of last month, and stems from a recent run of positive macroeconomic news, including strong job growth.

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