The Bloomberg dollar index is set to close its best year on record, up circa 12%. The index measures the dollar against a basket of major trading partners, this includes emerging market currencies like MXN and CNH
This year, the biggest contributors to the index rising have been EUR and JPY, given the basket weights. The Mexican peso has held better ground vs the dollar so far, this could be attributed to attractive carry
There is a complete quarter of 2022 ahead, so in case we see a pullback and a repricing of rate expectations tomorrow, then the dollar was king until September
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