US Dollar Gains Stability, Says Rabobank Strategist

US Dollar Seen as More Stable, Says Rabobank's Jane Foley In a recent interview on Bloomberg TV, Jane Foley, head of FX strategy at Rabobank, expressed her optimism about the future of the US dollar, stating that it is "a lot more stable" moving forward. This assessment comes as a welcome relief to investors and policymakers alike, who have been grappling with the implications of a potentially weakening dollar. According to Foley, the dollar's stability is largely due to the US Federal Reserve's decision to maintain its interest rates at a level that is higher than those in other major economies. This has led to a significant increase in the dollar's value, with the US dollar index (DXY) rising by over 10% in the past year alone. As of November 3rd, 2025, the DXY stood at 104.23, its highest level since 2002. The dollar's stability has significant implications for the global economy, particularly for countries with large trade deficits. A strong dollar can make their exports more expensive, reducing demand and exacerbating their trade deficits. On the other hand, a stable dollar can provide a boost to the US economy, making its exports more competitive and reducing the country's trade deficit. Rabobank's Jane Foley noted that the dollar's stability is also influenced by the country's strong economic fundamentals, including its low unemployment rate and robust economic growth. The US economy has been growing at a steady pace of around 2% per annum, outpacing many other major economies. This has led to increased investor confidence in the dollar, with many investors seeking safe-haven assets in times of economic uncertainty. The dollar's stability has also had a significant impact on the global currency market. The euro, which has been a major beneficiary of the dollar's weakness in recent years, has seen its value decline significantly. As of November 3rd, 2025, the euro stood at $1.05, its lowest level in over a decade. Looking ahead, Foley believes that the dollar's stability will continue to be a major theme in the global currency market. She noted that the US Federal Reserve is likely to maintain its interest rates at a level that is higher than those in other major economies, which will continue to support the dollar's value. However, she also cautioned that the dollar's stability is not without risks, and investors should remain vigilant in the face of potential economic shocks. In conclusion, the US dollar's stability is a welcome development for investors and policymakers alike. While there are risks associated with a strong dollar, the benefits of a stable currency cannot be overstated. As the global economy continues to evolve, it will be interesting to see how the dollar's stability plays out in the months and years to come.