In view of these improvements, and of perceptions that the US economy is likely to prove fairly resilient to foreign-exchange appreciation, market participants have discounted earlier rate hikes in the US than in other major blocs, and widening yield and forward rate differentials have favoured the US dollar.
As you are aware, the actual timing for a lift-off in US interest rates remains the subject of much debate and speculation. Conversely, the resulting currency depreciation in regions like Europe, Japan and Latin America is seen as growth-enhancing and also assisting, in some cases, with warding off the risk of deflation.