BofA sees more strength for U.S. dollar in Q2

Bank of America Sees Stronger U.S. Dollar in Q2

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The U.S. dollar is expected to strengthen in the second quarter, according to Bank of America, driven by economic resilience and interest rate policy.

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Bank of America (BofA) expects the U.S. dollar to strengthen in the second quarter of 2026, supported by macroeconomic factors and monetary policy trends.

According to analysts, the resilience of the U.S. economy, combined with relatively high interest rates, continues to attract global investors to dollar-denominated assets. This trend supports the appreciation of the U.S. currency against other major currencies.

Geopolitical uncertainty, including tensions in the Middle East, is also reinforcing the dollar’s role as a safe-haven asset, increasing demand during periods of global market volatility.

Another key factor is the stance of the Federal Reserve, which remains cautious regarding inflation. If interest rates stay elevated for longer, the dollar could maintain its upward momentum.

However, analysts warn that unexpected shifts in global markets or changes in monetary policy could impact the currency’s trajectory throughout the quarter.