Traders have shifted to their most bullish stance on the US dollar since 2015, with the currency index climbing to its highest level in 13 months.
The surge reflects a rapid repricing of Federal Reserve policy expectations, as market participants increasingly price in a potential rate hike rather than further easing.
The dollar’s strength is broad-based, with the currency strengthening approximately 0.5% against the Singapore dollar year-to-date in 2026.
This move marks a significant shift in sentiment, driven by a wave of buying interest that has pushed the greenback to multi-year highs against a basket of major peers.
The repricing comes as traders digest evolving macroeconomic data and Federal Reserve communication, leading to a swift adjustment in the rate path outlook.
The shift underscores growing confidence in the US economic outlook relative to other major economies, fueling demand for dollar-denominated assets.