Our 2023 outlook for currencies

Our 2023 outlook for currencies

A volatile end to US dollar outperformance.

The US dollar is likely coming off a major peak, suggesting a decline in 2023 (12- month projection at USD1.10 per euro). But we see scope for a rebound in the US dollar in the next few months (three-month projection at USD1.00 per euro). 

An economic downturn in major economies coupled with central banks keeping financial conditions tight may favour defensive currencies such as the Japanese yen. Recent signs of policy normalisation in Japan could prove to be another key supportive factor, explaining our revised 12-month projection to JPY125. 

On the contrary, cyclical currencies, including EM currencies, could underperform in the first part of 2023 before outperforming when the worst of the economic slowdown has passed.

Please confirm your profile
Please confirm your profile to continue
Confirm your selection
By clicking on “Continue”, you acknowledge that you will be redirected to the local website you selected for services available in your region. Please consult the legal notice for detailed local legal requirements applicable to your country. Or you may pursue your current visit by clicking on the “Cancel” button.

Welcome to Pictet

Looks like you are here: {{CountryName}}. Would you like to change your location?