A 100 basis point rate cut making the dollar weak

8월 13일

Markets expect a 100 basis point Fed rate cut during the remaining meetings this year.

A 100 basis point rate cut by the Fed would likely weaken the U.S. dollar.

Lower interest rates reduce the yield on dollar-denominated assets, making them less attractive to investors.

This could lead to a decrease in demand for the dollar, causing the Dollar Currency Index (DXY) to decline.

Additionally, a weaker dollar might boost U.S. exports by making them more competitive globally, but it could also increase inflationary pressures.