US Dollar: FOMC fallout weighs on USD – MUFG
Lee Hardman at MUFG highlights that the US Dollar index has fallen back below 100.00 following last week’s FOMC meeting, as the Fed left rates on hold and Chair Kevin Warsh offered less hawkish guidance.
The US Dollar index has dropped below 100.00 following the recent Federal Open Market Committee (FOMC) meeting, according to MUFG, as the Federal Reserve decided to keep interest rates on hold and Chair Kevin Warsh provided less hawkish guidance. MUFG forecasts a gradual weakening of the US dollar this year, assuming no rate hikes from the Fed.
The absence of clear forward guidance from Warsh is making it challenging to predict the Fed's future actions, thus contributing to market volatility. While MUFG expects the dollar to weaken further later in 2026, there is a chance it could remain stronger if the Fed decides to act.
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