Brown Brothers Harriman said the US Dollar is being supported by widening US\u2013G6 interest rate differentials and rising longer-term US real yields. Those dynamics continue to favour the greenback, while US growth outperformance and strong foreign demand for US securities also underpin the currency.<\/p>\n\n
However, the firm added that tightening by other major central banks reduces policy divergence with the Fed, which could cap gains in the DXY index. On that view, DXY may find it hard to maintain a move beyond its 24 June peak of 101.80, even if yield support and relative growth remain constructive.<\/p>\n\n\n\n