The Fed's interest rate hike is nearing its end, and the trend of the U.S. dollar index is at a "watershed"

In late Asian trading on Friday (September 15), the latest price of the U.S. dollar index was 105.32, and the opening price was 105.35. The U.S. dollar index has strengthened significantly recently, the interest rate gap between China and the United States has continued to invert, and the RMB exchange rate has depreciated in the short term. However, the external factors supporting the U.S. dollar are weakening. The dollar's strength is unsustainable.

Industry insiders said that the cumulative effect of interest rate hikes on the U.S. economy and finance continues to emerge. The trend of U.S. inflation is relatively in line with expectations, and the Federal Reserve is nearing the end of raising interest rates. The strengthening of major non-U.S. currencies will also have a certain restraint on the U.S. dollar index. The economic data disclosed since September show that the U.S. economy is highly resilient, and leading indicators have recovered. The divergence between the economic and monetary policies of the United States and non-U.S. countries has intensified, causing the U.S. dollar index to rise again. Institutional analysts believe that as the upward revision of U.S. growth expectations slows down after September, the relative advantage of the U.S. dollar may converge, and the time when the discussion on whether the Federal Reserve will raise interest rates in November is settled may become a "watershed" for the trend of the U.S. dollar.