Dollar's Resurgence: A New Chapter for Global Markets

The dollar is on track for its first monthly gain this year, buoyed by strong economic data and diminishing fears about U.S. asset prospects. This resurgence is challenging the positions of investors who were betting against the greenback, affecting European markets and halting a gold rally.

Shaniel Ramjee of Pictet Asset Management anticipates an increase in dollar holdings as U.S. economic trends outshine European counterparts, signaling a potential cessation of 2025's major market trends. A report from Barclays corroborates this with a slowdown in bets against the U.S. currency.

Meanwhile, Amundi's Monica Defend maintains a long-term view of a declining dollar yet remains open to adjusting her stance based on U.S. growth surprises. The currency's revival is also linked to broader market rotations, including U.S. equities outperforming amid AI investment enthusiasm.

(With inputs from agencies.)