The Dollar Will Shine Brightly, And The Bitter Will Come.

When the pain is fading, the dollar will usher in a new round of growth.

Deutsche Bank, the world's second largest foreign exchange dealer, pointed out on Thursday (March 3rd) that the dollar index will resume its rally this year following the slide in February.

In November, the pain index used to measure inflation and unemployment fell to its lowest level in nearly six years, which laid the prospect of this currency.

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The Federal Reserve is raising interest rates on Friday.

It is expected to remain at a low level for eight years.

"The pain index is not painful," said Alan Ruskin, head of global exchange research at Deutsche Bank in New York.

"The tighter the labour market, we are more likely to be in the cycle of the Fed's support for the dollar."

In February, the Bloomberg dollar index, which tracks the US dollar against 10 major currencies, dropped by 1.8%, as the market worried that the global economic slowdown would drag on the US's largest economy.

The dollar fell last month the largest since April 2015.

Earlier, the market expected the Federal Reserve to raise its borrowing costs, while other main ones.

The US dollar index has been rising for two consecutive years.

On Friday, the United States will announce the report on non farm employment in February.

According to the median expected value of analysts surveyed by Bloomberg, the unemployment rate is expected to fall to 4.9% and 195 thousand of new jobs.

Data released by the US Department of labor last month showed that the consumer price index rose 1.4% in January.

On Thursday, the pain index was 6.3, down to 5 in November, the lowest level since 1956.

Ruskin pointed out that although the pain index is not perfect, the impact on the strength of the dollar is often lagging behind rather than foreseen. This index still shows that the strong job market will support the US dollar.

Ruskin expects the US dollar to rise to 0.95 against the euro at the end of the year.

Despite its weak performance last month, it is too early to say that the dollar has reached its peak.

During the day, the US dollar traded near the Japanese yen at 113.39 and declined 0.7% to 1.0947 against the euro.