Will the Dollar Recover from 2009 Lows as the Rate Outlook Perks Up?

There are many fundamental headwinds that are keeping the US dollar on its bearish path – long-standing deficits, uneven economic growth, a gradual effort to diversify away from the reserve currency and stubborn risk appetite trends have all played prominent roles over the past months. However, one particular concern stands out above all the rest: restrained interest rate expectations.