MUFG: Dollar could fall further on prospect of rate cuts

BlockBeats news, September 3, Mitsubishi UFJ said that the US dollar may fall further after the recent decline because the Federal Reserve is likely to start cutting interest rates in September and may send a signal of further rate cuts than previously expected.

Analysts said: "The next set of forecasts in September will show rising unemployment and falling inflation, which will serve as the basis for starting a rate cut cycle." They said that the median forecast for interest rates in 2024 may rise from one rate cut to possibly three or four times.

However, broader geopolitical risks and weak economic growth in Germany should limit the depreciation of the US dollar. Mitsubishi UFJ expects the euro against the US dollar EUR/USD to rise from the current 1.1035 to 1.12 by the end of the year. (Jinshi)