The dollar stages a comeback, with the Fed's war on inflation putting it on course for its first monthly gain since September
The dollar looks set to snap a four-month losing streak in February, with investor expectations that the Federal Reserve will keep up its war on inflation through 2023 powering the greenback higher., which tracks the buck's performance against a basket of six alternative currencies, has climbed just under 3% this month – meaning it is on track for a first monthly gain since September 2022.
The US currency has rallied thanks to the prospect of further interest-rate rises, which has become a top-of-mind issue for markets over the past month. Rising rates tend to be bullish for the greenback, because they make it more attractive to foreign investors who are seeking higher yields. Buying the currency was one of the hottest trades of the first nine months of 2022 as the Fed brought in four consecutive outsized rate hikes.in the final quarter of the year amid growing speculation that the central bank would have to start lowering interest rates to prevent a 2023 recession.
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