On April 26, analysts at Wells Fargo noted that the dollar could trade around current levels in the second quarter and depreciate in the second half of 2023.
The dollar is experiencing multiple crossover trends, which could keep the greenback stable by the end of the second quarter of 2023.
In the longer term, we think the Fed will cut interest rates more aggressively than other central banks, which could put downward pressure on the dollar in the second half of 2023 to 2024.
Emerging market currencies may continue to generally strengthen in the future, and the best opportunities exist in high-yielding currencies in Latin America and European emerging markets.