Simona Mocuta, chief economist at State Street Global Investments, said that the US dollar was supported by inflows of safe-haven funds and market pricing where the Federal Reserve will raise interest rates, but these factors are already reflected in the exchange rate, so the dollar will return to its depreciation trend over the years. Her benchmark forecast is that the Federal Reserve will keep interest rates unchanged throughout this year, but Mokuta said that the risk of raising interest rates once still exists. Even if interest rate hikes occur, this is already reflected in the price of the US dollar, so it won't have much additional impact; failure to raise interest rates will weaken the dollar. As concerns about the US fiscal outlook remain, the dollar will return to its long-term depreciation trend.

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