The U.S. dollar, already under pressure this year, is expected to continue weakening over the next 6-12 months. A Reuters poll of currency strategists found that most believe the current trend isn’t over.
-
The greenback has dropped about 10% year-to-date, as investors are shifting into currencies and assets like gold.
-
A large share of analysts expect the dollar’s decline to deepen — 30 of 41 surveyed foresee further downward positioning by end of October.
-
Most believe the Federal Reserve will cut interest rates again in October and December, while other major central banks may have finished their easing cycles.
-
Against this backdrop:
-
The euro could strengthen 1.5–3.0% to around $1.19–$1.21
-
The Japanese yen may gain roughly 6%
-
The Australian and New Zealand dollars could rise 4–6%
-
🌍 Broader Factors at Play
-
U.S. fiscal deficits and concerns about the Fed’s independence are fueling investor unease.
-
Gold, which has surged more than 47% this year, is being seen as a safe haven alternative.
-
The ongoing positioning of traders already favoring a weaker dollar makes a sharp turnaround less likely.
The dollar’s struggle appears far from over. With forecasts pointing toward more Fed rate cuts, many strategists anticipate the greenback will remain under pressure through year-end.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Like this article? Show your appreciation by sending a tip to the author.
Leave Your Message Now