Affected by the expectation of interest rate cuts, the annual decline of the US dollar is set to be the largest since 2020

Sina Financial News After being hit by the market’s call for the Federal Reserve to end interest rate hikes, the dollar index fell more than 2% this year, the largest annual decline since 2020. The U.S. dollar fell significantly in the fourth quarter as there were growing bets that the Federal Reserve would cut interest rates next year, which weakened the greenback’s appeal as other Central Bank are likely to maintain higher Intrerest Rate for longer. Swap traders are now expecting the Fed to cut rates by at least 150 basis points, starting as early as March. However, the dollar’s recent decline suggests that there is room for at least a temporary rebound. Koji Fukaya, a researcher at Tokyo Market Risk Consulting, said that further, the dollar could Fluctuation ahead of the US presidential election in November. In particular, Trump’s presence as a candidate could trigger political turmoil and bring Fluctuation to the dollar.