Mitsubishi UFJ Predicts Further Decline in US Dollar

According to BlockBeats, on September 3, Mitsubishi UFJ indicated that the US dollar might experience further declines following recent drops. This expectation is based on the likelihood that the Federal Reserve will begin cutting interest rates in September and may signal more aggressive rate cuts than previously anticipated. Analysts noted that the upcoming set of forecasts for September is expected to show a rise in unemployment and a decrease in inflation, which would lay the groundwork for the start of a rate-cutting cycle. They mentioned that the median interest rate forecast for 2024 might increase from one rate cut to possibly three or four. However, broader geopolitical risks and sluggish economic growth in Germany are expected to limit the depreciation of the US dollar. Mitsubishi UFJ forecasts that the euro-to-dollar exchange rate (EUR/USD) will rise from the current 1.1035 to 1.12 by the end of the year.