Reported 9 months ago
Chen Yu Chia, Deputy General Manager of Wealth Management Investment Advisory Department of OCBC Bank (Taiwan), mentioned that the unusually strong momentum of the US dollar against major currencies has begun to weaken, with global central banks and the Federal Reserve (Fed) adopting cautious stances to suppress inflation back to target levels. It is expected that the US economy will shift from unexpectedly strong growth to a soft landing in 2023 second half to 2024 first quarter, while the EU and the UK economies are gradually recovering from technical recessions. The Fed is anticipated to adopt a loose monetary policy, expecting quarterly interest rate cuts of 25 basis points from 2024 third quarter to 2025 end, leading to a gradual depreciation of the dollar and potentially reaching DXY 100 to 107 range by the second half of 2024. Various reports also indicate challenges and potential economic downturns faced by the US, including high inflation and increasing federal debt levels, which could impact the dollar's performance.
Source: YAHOO