Room for USD strength to reverse further after it became more extreme last year – MUFG

Room for USD strength to reverse further after it became more extreme last year – MUFG DollarIndex Banks

USD strength became more extreme last year

“Similar extreme levels of USD overvaluation were last recorded in the early 2000’s and mid-1980’s and subsequently proved to be long-term bearish turning points for the USD. On both occasions, the USD then fell by around 40%. In comparison, the USD has declined so far by around 8% since the peak in October thereby leaving room for the adjustment lower to extend further in the coming years.”Information on these pages contains forward-looking statements that involve risks and uncertainties.

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