Broad USD strength is persisting, contrary to our expectations that the second half of the year would present a more challenging environment for it. The Federal Reserve (Fed) raised its policy rate to 5.50% in late July, and US yields have risen significantly since June due to resilient economic data and the belief that Fed policy will remain tight for an extended period. At the same time, the international environment has weakened and China’s growth rebound has failed to develop, leaving a weaker yuan (CNY) and adding to the strong, overall tone of the USD. The USD's essential support comes from its still favourable ... (full story)