Skip to main content

Dollar strength hasn’t pushed its valuation to extremes

The recent rally in the US dollar has been driven by strong economic fundamentals in the US relative to other major economies and a favourable shift in yield differentials, leaving the greenback only a bit above our estimates of “fair” value. We expect these factors will continue to favour the dollar, and think there is scope for further strength given its overvaluation is not extreme by historical standards.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access