BMO expects modest dollar strength

FX strategist downbeat about tax-reform plan and expects a drag on the dollar

US dollars and globe
Greenback glow: the dollar is expected to get slightly stronger in the coming months

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Market participants’ expectations for a strong dollar rally could be tempered, as the controversial tax plan on imports and exports has only a 25% chance of being passed, says Greg Anderson, global head of FX strategy at BMO Capital Markets.

The proposals for a border tax are likely to induce US multinationals to repatriate production and operations to their home country, giving a dramatic boost to the dollar. But there are several hurdles to clear before businesses