Analyst: Dollar could fall 10% if Fed rate cuts exceed expectations

The U.S. dollar could fall 10% this year if the Federal Reserve pursues more aggressive interest rate cuts than the market anticipates following a change in leadership, according to an analysis. Walter Bloomberg reported that Lee Ferridge, an analyst at U.S. bank and asset manager State Street, noted that while traders expect two rate cuts by the end of the year, a third is possible amid pressure from the Trump administration on the Fed. Ferridge suggested that additional rate cuts could weaken the dollar by increasing hedging demand from foreign investors.