Dollar Rises 0.7% in May as Wall Street Questions Further Gains
Updated
Updated · Bloomberg · May 29
Dollar Rises 0.7% in May as Wall Street Questions Further Gains
2 articles · Updated · Bloomberg · May 29
The Bloomberg Dollar Spot Index is up 0.7% so far in May, putting the greenback on track for only its fourth monthly gain since its 2025 downtrend began.
Higher US rate expectations drove the rally, with traders increasing bets that the Federal Reserve will raise interest rates by early 2027 and lifting the appeal of US assets.
Wall Street strategists are wary the advance may be hard to extend, even after the month’s rebound strengthened the dollar.
Is the dollar's powerful May rally the final surge before its predicted multi-year decline resumes?
With markets demanding rate hikes, will the new Fed chair's preference for lower rates trigger a policy shock for the dollar?