The US dollar is heading for its first weekly gain since mid-March, and analysts at Capital Economics believe that the worst times for the global reserve currency may be behind.
As of 16:40 Moscow time, the dollar index, which tracks the value of the American currency against a basket of six other currencies, rose by 0.2% to 99.385 after a sharp rebound from a three-year low in the previous session.
"We expect the US dollar to regain some of the lost ground in the coming months as its usual correlation with interest rate differentials recovers," analysts at Capital Economics noted in a memo dated April 25.
