Major currencies more stable in 2023?

Major currencies more stable in 2023?

Dubai, United Arab Emirates: As inflationary pressures continue to subside, major currencies of the world’s superpowers are on the course of stability. Central banks have recurrently hiked interest rates to destimulate red-hot economies which have been scorched by macroeconomic instability and growing concerns of imminent recessions.

USD Cooling Down

The U.S. dollar was on a relentless frenzy of escalation in 2022, fueled by supply & demand imbalances, soaring energy prices, fresh COVID-19 cases in China and other demoralizing drivers. The Federal Reserve did not think twice in aggressively hiking interest rates to tame inflation, and the diminishing dollar index reflects a recovering market.

Given expectations that the Federal Reserve will be less aggressive with future rate hikes, the focus will center around the brightness of data from around the world.

Euro on the Rise

Arguably the hardest-hit from the bunch, the euro deteriorated to 20-year lows as the Russia-Ukraine war skyrocketed energy prices, and the closure of the highly-utilized Nord Stream 1 has further-constrained energy supply in the continent. This created havoc and ensued record-high inflation, growing investor skepticism and higher consumer reluctancy to spend and invest.

ECB, historically hesitant to bump interest rates, has followed suit of other major nations in their approach towards combating