Analyst: The Federal Reserve's rate cut will reduce hedging costs, and the dollar may decline next year.

Odaily Planet Daily reports that Chris Turner, an analyst at ING Group, stated during a webinar that the outlook for further Federal Reserve rate cuts should reduce hedging costs, and the US dollar may decline next year. He mentioned that falling interest rates will make hedging US assets cheaper for European investors. He said this could increase the hedging ratio of US dollar assets and weaken the dollar exchange rate. ING Group expects the Federal Reserve to cut interest rates by an additional 75 basis points. The bank forecasts that by Q4 2026, the euro will rise to 1.22, driven by expectations that German fiscal stimulus will accelerate economic growth in the Eurozone. (Jin10)