Analysts: Dollar has little room to fall further

Odaily News Monex Europe analysts said in a report that the dollar has little room to extend its recent decline given expectations that the Federal Reserve will cut interest rates cautiously. Swap rates reflect 1.5 rate cuts this year, but the Fed's rate cuts may be smaller given sticky inflation. A significant depreciation of the dollar would require "a fundamental reassessment of the uniqueness of US economic growth or a perfect disinflation phenomenon", but neither of these is likely to happen in the near term. However, a significant rebound in the dollar this week is also unlikely. The minutes of the Federal Reserve meeting released on Wednesday may seem a bit outdated, so the fate of the dollar will depend more on the unpredictable Trump. (Jinshi)