The Bloomberg Dollar Spot Index is up 0.7% so far in May, as investors ramped up bets that the Federal Reserve will raise rates by early 2027, boosting the appeal of US assets. The gauge is on track for only its fourth monthly gain since the greenback’s 2025 downtrend began.
Hedge funds are increasingly downbeat on the dollar as the prospect of a two-week ceasefire extension between the US and Iran sap the currency’s war-driven strength.
Citigroup calls it a “head scratcher.” Goldman Sachs terms it “striking resilience.” For Columbia Threadneedle, it’s a “reward for proactiveness.”
