Although the US dollar has retreated from last year’s peaks, which saw it reach its highest point on a trade-weighted basis in 20 years, it has remained at very elevated levels in 2023. The euro has moved in a $1.05-1.12 range so far this year, while sterling has largely traded in a $1.20-1.31 corridor. These are low ranges for both currencies against the dollar in the context of their trading levels for most of the last two decades. Similarly, the Australian, New Zealand and Canadian dollars are also trading at relatively weak levels against the US currency.
