EIU predicts persistent stronger US dollar; one dollar equals GH¢14.90

The US dollar remains near an all-time high in real effective terms due to the robust US economy and high interest rates, despite market predictions of a slowdown.

The Economist Intelligence Unit (EIU) notes that investor repositioning and global political risks also bolster the dollar.

Although the EIU expects a gradual weakening of the dollar from late 2024, the risks favor its continued strength. Efforts by the US to weaken its currency are unlikely to succeed.

The EIU forecasts only minor gains for other major currencies by mid-2025, as a delayed start to US monetary easing offsets reduced inflation and employment readings.