Institution: The US dollar may decline in 2026 due to Federal Reserve rate cuts

Jinse Finance reported that Pictet Asset Management strategist Luca Paolini stated that as economic growth slows, paving the way for further rate cuts by the Federal Reserve, the US dollar will face a new round of weakness next year. He pointed out that the interest rate differential of the US dollar is narrowing significantly. "We expect the US economy to become slightly weaker, which will gradually ease inflationary pressures." In contrast, economic growth in other parts of the world may improve, especially in Europe and Japan. In addition, the valuation of the US dollar still appears relatively high. Pictet expects that by the end of 2026, the US Dollar Index will fall from its current level near 99.55 to 95.