The dollar was in the ascendancy from mid-2021 through to autumn 2022 as hikes in US interest rates, rising US bond yields and elevated geo-political tensions drove the currency to twenty year highs.
The dollar lost some further ground in the late spring amid the emergence of stresses in parts of the global banking system, in particular in the US.
At the same time, the euro was softer in the aftermath of the May ECB meeting, despite its continuing hawkish policy stance.
