RBC: yield differentials will favour dollar over others

Despite falling US interest rates, the dollar will remain a high-yielding currency

Image of a hot air balloon made of a 100 dollar bill
Diverging interest rates will keep currencies like the euro and the yen on the back foot against the dollar for the foreseeable future

CLICK HERE TO DOWNLOAD THE PDF (only available to FX Week Corporate subscribers)

Despite falling US yields, the sizeable interest rate differential that remains between the dollar and other major currencies will favour the US currency against G10 currencies over the next year, says Adam Cole, RBC’s London-based head of FX strategy.

Cole explains that the Canadian bank is putting more weight on the actual yield differential between the dollar and other currencies than the decreasing path of US

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.fxweek.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: