Analysts: Fed rate decision boosts dollar's near-term outlook
The latest interest rate decision by the Federal Reserve has increased the likelihood of further appreciation of the US dollar in the first half of 2025, according to a report by Mitsubishi UFJ analyst Lee Hardman. US interest rates are expected to remain at elevated levels for a longer period, leading to a wider policy divergence with other major central banks. Expectations of an expanded policy divergence, coupled with the risk of higher tariffs being imposed at the start of a second Trump term, will continue to put upward pressure on the US dollar next year.
