Institution: The recovery potential of the US dollar may be limited

ChainCatcher news, David Meier, an economist at Baosheng Group, stated in a report that if expectations for a significant interest rate cut in the U.S. weaken, the dollar may rebound, but the increase will be limited.

He said: "We do not believe the dollar will return to the highs of late 2022, as overvaluation and declining interest rates pose significant resistance to its movement." It is expected that currencies such as the pound, Australian dollar, and New Zealand dollar may continue to strengthen against the U.S. dollar, as the pace of rate cuts in these countries may not be as fast as in the U.S. He noted that especially for the pound and New Zealand dollar, their central banks' rates may be higher than those in the U.S. by the end of the year. (Jin Shi)