SYDNEY — The dollar will strengthen against all its Group-of-10 peers except the pound and Canadian currency in the first quarter, while New Zealand’s kiwi will be the worst performer, according to analyst forecasts.
The greenback has advanced against eight of its G-10 counterparts since the end of September as the Federal Reserve raised interest rates and futures signal 55 percent odds another increase will take place by April. The kiwi and Australian dollar have shrugged off weakness in commodities to lead gains. The pound dropped to the lowest since April this week versus the dollar amid concern a slowing U.K. economy makes it less likely the Bank of England will follow the Fed in tightening policy next year.
Masashi Murata, a vice president at Brown Brothers Harriman & Co. in Tokyo, said, “The big premise for forecasting currencies next year is the dollar’s uptrend. It will be difficult for any G-10 currency to beat the dollar.”
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