Analysts: Fed rate cuts will reduce hedging costs, and the dollar may fall next year.

Chris Turner, an analyst at ING, said in a webinar that the dollar may fall next year as the prospect of further interest rate cuts by the Federal Reserve should lower hedging costs. He stated that lower interest rates will make it cheaper for European investors to hedge US assets. He said this could increase the hedging ratio of dollar assets and drag down the dollar's exchange rate. ING expects the Fed to cut interest rates by another 75 basis points. The bank projects the euro will rise to 1.22 by the fourth quarter of 2026, driven by expectations that German fiscal stimulus will accelerate eurozone economic growth. (Jinshi)