Mitsubishi UFJ: The Federal Reserve's late interest rate cut may lead to a weaker dollar.

On May 30, Mitsubishi UFJ analyst Derek Harpenny pointed out in a report that the Federal Reserve may need to support the economy by cutting interest rates later this year, which could lead to a weaker dollar. He said the Fed's pause in rate cuts could last into the summer, and the market doesn't expect another rate cut until September. This means that the Fed is likely to lag significantly behind other G10 central banks in returning interest rates to a neutral level that neither stimulates nor drags down economic growth. This means that the Fed will need to do more easing by then, which we think will be a factor in weighing on the USD later this year.