Citi: The growth of the dollar will continue, but will be delayed

Citi's forex strategists predict that in the foreseeable future the growth of the dollar will continue, but will be considerably slower than a year ago. Various factors will exert pressure on the upward trend.

First, a soft monetary policy in Europe, Japan and China will have less influence on markets than the careful approach of the Federal Reserve in raising of the interest.

As for inflation, a strong dollar is undermining the base index of consumer prices in the developed market economies and slower growth will allow the index to increase to some extent - because commodity prices are calculated in dollars and exhibit tends to rise when the US currency weakens.