Dollar May Fall Another 15% on Peak Rate Bets, Eurizon Says
- US currency set to weaken over next four-to-six quarters: Jen
- Inflation set to slow at roughly same pace it rose in 2021
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The dollar is vulnerable to sliding another 10% to 15% in the next year and a half as cooling inflation allows the Federal Reserve to cut interest rates, according to Stephen Jen at Eurizon SLJ Capital Ltd.
The US central bank is likely to be very close to, if not already past, its peak hawkishness and its next move will be to lower borrowing costs, Jen — the inventor of the dollar smile theory — and his colleague Joana Freire wrote in a research note.