The US dollar continues to fall in price, reaching a multi-month low. According to Yahoo!Finance, on Friday, December 22, the US dollar index was 101.76, down 0.07% from the previous day. This is the dollar's lowest level since July 2023.
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The fall of the dollar is associated with several factors, in particular:
- Slowing inflation growth in the United States. At the end of November, inflation in the United States was 6.8%, which is the lowest figure over the past few months. Expectations for changes in the monetary policy of the US Federal Reserve System. Experts believe that the Fed may begin lowering its key rate as early as 2024.
CNBC estimates that the US dollar index has lost more than 2% over the past two weeks. Experts believe that the dollar may continue to fall in price next year.
At the same time, American investor and billionaire William Ackman believes that the world's first economy could face a “hard landing” if the Federal Reserve does not soon begin to reduce the key rate.
Change in the dollar index over the last year/Source: CNBC