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dollar is expected to appreciate in the near term due to expectations that the Federal Reserve will implement a series of interest rate increases.
This outlook follows the central bank's recent decision to raise its benchmark rate by 0.75 percentage points and remove its pledge to defend 2% inflation, signaling that further tightening is possible.
Investors also expect other central banks to adopt tighter monetary policies, yet the Eurozone and the U.K. are expected to implement more dovish policies.
Lower energy prices are cited as reducing inflationary pressures, which supports the U.S. dollar, while geopolitical uncertainties in the Middle East provide additional backing for the greenback.
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