Having been very much to the fore for the first three quarters of last year, the dollar lost some ground in the final months of 2022. A perfect storm of rising US interest rates and bond yields, and a surge in commodity prices drove the greenback higher up until around the end of September.

Inflation at very high levels, which combined with other headwinds such as the sharp tightening of monetary policy, are expected to act as a significant drag on global economic activity in 2023

AIB's Economic Research Unit provides regular commentary on the domestic and global economy, currency and interest rate markets, and special commentary on key events...