Mars Finance News, September 16, as traders increasingly bet on the Federal Reserve to cut interest rates by 50 basis points this week, the US dollar fell during Monday's Asian trading session. The decline in the US dollar boosted major currencies such as the yen, which rose to its highest level since July 2023. After weeks of debate over whether the Federal Reserve would start its easing policy with a 25 basis point or 50 basis point rate cut, traders are leaning towards the latter option.
Futures prices tied to the Fed's decision to cut interest rates this week show a 58% chance of a 50 basis point cut, compared with a 50-50 forecast late Friday. "We believe that the Fed is about to enter a new round of easing cycles, which is a major headwind for the dollar," said Rodrigo Catril, a strategist at National Australia Bank. "As the Fed eases monetary policy next year and lowers the funds rate to neutral or even below neutral, the dollar will begin a cyclical decline." (Jinshi)
