Deutsche Bank, Goldman See Dollar Fall Resume with Fed Rate Cuts

• Wall Street banks, including Deutsche Bank and Goldman Sachs, predict the US dollar will resume its decline next year.
• The dollar's anticipated slide is attributed to the Federal Reserve's ongoing interest rate cuts.
• Strategists expect the dollar to weaken against major currencies like the yen, euro, and pound, with the Bloomberg Dollar Spot Index projected to drop 3% by late 2026.
• A weaker dollar could increase import costs, boost exports, and extend rallies in emerging markets.
• Some analysts, like Citigroup, hold a contrarian view, expecting a dollar recovery in 2026 due to the robust US economy and AI boom.

Why It Matters: A weakening dollar could shift global investments and alter import prices.