US Dollar Value Rises 2.71% in February... "Will Only Last for a Short Period"

102.1 on Day 1 → 104.87 on Day 28
Rebound Since Last September

The value of the dollar, which had been declining since September last year, has risen by nearly 3% over the past month. However, there are expectations that this upward trend will not last long.

The dollar index, which measures the value of the dollar against six currencies including the yen and the euro, stood at 104.70 as of 5:48 PM Korea time on the 3rd. This represents a 3.85% increase compared to 100.820 on the 2nd of last month. The dollar index rose by 2.71% during February (from 102.1 on the 1st to 104.87 on the 28th).

The dollar value surged to a 20-year high last September but declined until January this year as the U.S. Federal Reserve (Fed) slowed the pace of interest rate hikes.

Experts have analyzed that this rise in the dollar value will not continue. Lee Hardman, an economist at Mitsubishi UFJ Financial Group (MUFG) in Japan, said last month that the dollar's strength was due to concerns over the Fed's tightening of monetary policy, adding, "It will be maintained for a very short period and then the dollar will weaken throughout this year."

According to a survey conducted by major foreign media targeting 69 foreign exchange experts, the dominant interpretation is that the dollar will weaken against all major currencies over the next 12 months. This is explained by the global economy recovering and the U.S. having started raising interest rates earlier than the Eurozone (20 countries using the euro), so it is expected to stop raising rates sooner.

U.S. CNN also reported, citing Quincy Crosby, global chief strategist at LPL Financial, that the dollar's movement will vary depending on the Fed's response and inflation.