US Dollar USD Forecasts
Forecasts for the US dollar change all the time, affected by news events and relative sentiment towards the US economy. This continually updated article reviews the latest forecasts from banks and FX experts as well as news and recent movements of USD in the currency markets.
BER ResearchWhat’s in this US dollar forecast summary?
USD Outlook
The US Dollar has proven itself to be a safe haven amid the Ukraine-Russia conflict as investors seek refuge from the uncertainty.
A clear reflection of this is that the US Dollar index (measure of the USD strength against basket of currencies) is approaching 20 year highs.
You can also read our full Foreign Exchange Guide to the United states.
What is a good US Dollar exchange rate?
The market’s expectation for a rise in US inflation and thus interest rates has pushed up the USD exchange rate against most currencies.
So what will the dollar do for an encore after it posted its biggest annual gain in six years? America’s high rate of inflation likely means ‘Dollar bulls’ (stronger dollar) are likely to remain in charge at least until U.S. inflation shows clear signs of peaking.
The US dollar is the most popular reserve currency so whether the USD rises or falls in the future is a difficult question and the answer depends on many factors.
A good way to consider the US dollar’s current relative value is to look at the recent US Dollar Index which measures the USD value against a range of peer currencies.
The U.S. Dollar Index at 105.1 is 2.1% above its 90-day average 102.9 with range 99.48-105.5.
The following sections show a summary of trends and forecasts for popular US dollar exchange cross rates:
USD to EUR
USD to EUR at 0.9580 is 1.7% above its 90-day average 0.9417 with range 0.9167-0.9633. USD/EUR Rates
As the tragic Ukraine war continues USD/EUR is near 0.95, a 5 year high.
Due to the Eurozone’s reliance on gas from Russia, the euro is very vulnerable to the events in Ukraine with EUR/USD dropping to around 1.04 in June whereas it had been approaching 1.15 in early February.
USD to AUD
USD to AUD at 1.4584 is 3.6% above its 90-day average 1.4073 with range 1.3197-1.4681. USD/AUD Rates
Since May the AUD/USD rate has traded in a range between 0.68 and 0.72 as the RBA has acted on a much predicted aggressive increase to interest rates.
However, the AUD’s traditional vulnerability to risk leaves it exposed to a broader correction.
USD to CAD
USD to CAD at 1.2853 is just 0.5% above its 90-day average 1.2784 with range 1.2489-1.3048. USD/CAD Rates
The Ukrainian crisis and the risk on-off market are pushing the Canadian dollar rate up and down in a range around 0.7850 to the US dollar (1 USD = 1.27 CAD).
Volatile oil prices due to the Russian invasion of Ukraine have lead analysts to predict large price movements to continue for the Canadian Dollar.
USD to GBP
USD to GBP at 0.8251 is 3.2% above its 90-day average 0.7994 with range 0.7624-0.8335. USD/GBP Rates
In June the GBP/USD exchange rate dropped as low as the 1.20 level after the Federal Reserve raised interest rates combined with the continuing impact of the Ukraine war on commodity prices.
The Bank of England has joined the global fight against inflation, but has raised rates by less than the US Federal Reserve.
So it seems the BoE’s gloomy economic forecasts has increased pressure on Sterling.
USD to MXN
USD to MXN at 20.24 is 1.0% above its 90-day average 20.04 with range 19.53-20.58.
Mid-year the peso has weakened back above the key 20 level versus the US dollar.
When uncertainty increases, traders tend to move quickly out of emerging market FX such as the peso first before looking for safe havens.
USD to INR
USD to INR at 79.09 is 2.2% above its 90-day average 77.37 with range 75.43-79.09. USD/INR Rates
From the end of the April and into May the USD/INR exchange rate has risen above the 77₹ level, well up from around 72₹ mid last year.
The Ukrainian crisis and its risks for energy supplies have pushed the dollar up against the rupee as India imports most of its oil requirements.
USD to JPY
USD to JPY at 136.3 is 4.5% above its 90-day average 130.4 with range 123.6-136.7. USD/JPY Rates
The Japanese yen continues to lose ground against the US dollar. For reference, with USD/JPY hitting 132 — a more than 20-Year Low for the yen.
Yen weakness against the greenback stems from the interest rate differentials between Japan and the US. The market expects that the Fed Reserve will continue to hike rates aggressively, while the BOJ is committed to low interest rates.
USD to SGD
USD to SGD at 1.3967 is 1.2% above its 90-day average 1.3796 with range 1.3561-1.3967. USD/SGD Rates
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Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.