The dollar has depreciated sharply against the euro over the past twelve months. Despite this situation, Stefanie Holtze-Jen, Head of Currency Strategy at DWS, citing three reasons why the dollar is headed for recovery, said, "Many market watchers expect the dollar to remain weak. DWS has a different view… We stick to our target of a euro/dollar exchange rate of 1.15 by the end of 2021”. The annual returns of euro investors who have invested in the US currency have been significantly dampened by the weakness of the dollar. And for Stefanie Holtze-Jen, it will be necessary to work on three specific factors for a recovery of the American currency.
She cited the growth gap between the United States and the eurozone that is likely to widen further, the United States leading in vaccinations, and the shifting interests of U.S. policymakers and the European Central Bank.
In addition, the European Central Bank is planning a more detailed investigation into the appreciation of the euro against the dollar since the start of the pandemic. The members of the board of the European Central Bank pointed out that the European Central Bank has instruments to counter the appreciation of the euro.