Dollar will weaken in time

The US dollar had a weak start to the year, with the euro-dollar rate rising above $1.20 and then reaching $1.25.

However, the currency has recovered strongly since the early spring, rising by some 9% on a trade-weighted basis. The dollar has been aided by strong US economic data. The economy grew by 4.1%, year-on-year, in the second quarter, the strongest rate in four years.

Meanwhile, the jobless rate has fallen below 4%.