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US Dollar Faces Volatile Weakness in 2026 Amid Fed Policy Shifts
US Dollar Faces Volatile Weakness in 2026 Amid Fed Policy Shifts
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BTCCSquare news:
The US dollar is poised for a turbulent decline in 2026, with the Dollar Index (DXY) hovering NEAR multi-month lows at 98 as of early January. Market analysts attribute this softening trajectory to the Federal Reserve's transition from restrictive monetary policy to a measured easing cycle, with rates expected to settle in the low-to-mid 3% range by year-end.
While the yield advantage over ECB and BoE policies may cushion the dollar's fall, investors brace for volatility. "The Fed's cautious rate cuts won't eliminate the US rate premium," notes David Adams of Morgan Stanley, "but sticky inflation or global risk aversion could trigger sharp countertrend rallies."
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