The US dollar is set for its steepest monthly decline since June, with the
Bloomberg Dollar Spot Index down 1.8% in April, driven largely by a US-Iran
ceasefire that reduced haven demand. Losses eased amid higher oil prices and
expectations of a potential Federal Reserve rate hike next year. Nathan Thooft,
senior portfolio manager at Manulife Investment Management, said, “Going
forward, the dollar is likely to trade lower but remain range-bound, with
declines tempered by relative US growth strength and ongoing global
uncertainty.” Other central banks’ hawkish stances have supported currencies
such as the Australian dollar and Norwegian krone.
