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.
Though US interest rates are expected to fall, the US dollar might not come down as far or as quickly as some believe because monetary policies are being eased all over the world, and because the dollar attracts safe haven inflows (there’s an absence of good dollar alternatives).
HSBC said to expect a stronger USD relative to the Australian dollar and New Zealand dollar, and against riskier emerging market currencies.
Goldman Sachs and RBC Capital forecast the downward course for Dollar to Yen to continue with a USD/JPY rate of 95 in the near future.
USD in the markets
In early May the continuing coronavirus pandemic and an associated possible re-escalation in the US-China trade tensions has moved the market into safer currencies such as the USD and JPY.
Goldman Sachs and RBC Capital forecast a large drop for US dollar against Japanese Yen to continue with a USD/JPY rate of 95 in the near future.
The US dollar held its value in 2019 despite the US-China trade tensions, mainly because the greenback is still considered a safer currency to own than most others.
You can also read our full Foreign Exchange Guide to the United states.
What is a good US dollar exchange rate?
This is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate's relative value is to look at the rate's history.
For example, the following table looks at the change in the USD to EUR exchange rate to the present day for periods going back upto 10 years:
| USD/EUR | Period to 29-May | Date | Rate |
|---|---|---|---|
| 1.8% ▼ | 1 Week | 22 May 2020 | 0.9174 |
| 2% ▼ | 30 Days | 29 Apr 2020 | 0.9193 |
| 0.7% ▼ | 90 Days | 29 Feb 2020 | 0.9068 |
| 0.2% ▲ | 1 Year | 30 May 2019 | 0.8985 |
| 1.2% ▼ | 5 Years | 31 May 2015 | 0.9113 |
| 10.1% ▲ | 10 Years | 01 Jun 2010 | 0.8179 |
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