Steven Englander says dollar will stay strong on AI inflows
The US dollar is set to stay strong for a while, mostly because of big investments in AI, solid company profits, and better returns.
Steven Englander from Standard Chartered Bank explained that America's lead in AI is pulling in global money and pushing interest rates up, which keeps the dollar high.
On the flip side, he expects the Indian rupee to stick around 96-97 per dollar since India isn't a major player in AI yet and high energy prices are holding it back.
Softer US inflation eases Fed pressure
Englander also pointed out that recent softer US inflation numbers are shaping what the Federal Reserve does next.
Even though oil prices have climbed, he said the US usually handles it by cutting demand instead of letting inflation rise.
Because of this, markets think more Fed rate hikes aren't needed right now, so the dollar has cooled off a bit and stock markets got a boost.