As the pattern suggests, Nikhil Vikamsey, Senior Partner at Alpha Capital, predicts that the US Dollar Index will trade around 111 by the end of the calendar year.
The belief that the US economy will be more resilient to higher interest rates and oil prices than other economies has helped the dollar rise. He believes that the FED’s speech from last week may lead to future rate hikes.
The IT sector is a contrarian investment that could do well in the next years, according to a Chartered Accountant with more than ten years of professional experience. He thinks valuations are also looking attractive.
According to the trend, the US Dollar index is predicted to trade at 111 at the end of the calendar year. The anticipation that the US economy will be more resilient to increased interest rates and oil prices than other economies, following the FED statement in the previous week, has helped the dollar rise.
A rise in the dollar will undoubtedly have an effect on developing nations like India; as a result, the market may see volatility and a correction as a result of possible pricing impacts.
Given that the Fed has already hinted that a rate hike may occur at the upcoming meeting, rates may increase or remain at the same level even if US inflation is on the decline.
Investors are biassed towards banks because of the substantial weight of banks in the Nifty index, the fact that they invest in index funds and exchange-traded funds, and the fact that banking and financial services are overrepresented in mutual fund schemes.
The IT industry is the foundation for upcoming advancements and technological advancement. Due to an increase in global interest rates that are getting close to their peak, they have been in a downward trend.
They will have strong recoveries once the global interest rate starts to decline and economies start to recover.
Additionally, valuations seem promising. It’s a contrarian wager that ought to succeed over the coming few years.