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

Odaily Planet Daily reports that Chris Turner, an analyst at ING, stated in a webinar that the US dollar may decline next year as the prospect of further interest rate cuts by the Federal Reserve should lower hedging costs. He said lower interest rates will make it cheaper for European investors to hedge US assets. This could increase the hedging ratio of dollar assets and drag down the dollar's exchange rate. ING expects the Federal Reserve to cut interest rates by another 75 basis points. The bank predicts 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)