Simon Derrick, chief currency strategist at BNY Mellon, says investors are taking flight from the dollar and buying currencies such as the peso.
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Jens Nordvig, head of fixed income research at Nomura Securities International, says investors should get back in the long-dollar trade as once U.S. data normalizes, the dollar will "regain its footing."
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Commodity currencies including the Australian dollar held onto solid gains early on Monday as the dollar and euro fell to the wayside and even lost ground to an otherwise soft yen.
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Recent resilience in the Australian dollar may have confused some investors, but Morgan Stanley says the upward momentum should remain for a while.
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Antje Praefcke, forex analyst at Commerzbank, says the U.S. dollar will continue to rally after U.S. Federal Reserve chair Janet Yellen signaled an interest rate hike could come earlier than expected.
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The rally in the U.S. dollar on the notion that U.S. interest rates could rise sooner rather than later may just be getting started, analysts say.
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