The dollar will fall below 100!If you can t add it, Powell of the Fed will give in, and Yellen may r

Mondo Finance Updated on 2024-01-30

The most recent in the United StatesMacroeconomicsThe data showed weakness, and the Fed began to soften its attitude and no longer adhere to the policy of continuous interest rate hikes, which made the market pessimistic about the outlook for the dollar. With the United StatesEconomyCan't afford to be highInterest ratespressure, coupled with the Fed's policy pivot, the market is full of negative expectations about the future direction of the dollar.

This expectation is manifested in:U.S. dollar indexof the decline,U.S. dollar indexIt has reached 101 and may soon fall below the 100 mark. This means that the exchange rate of the US dollar against other major currencies will fall, including:RMB。ExpectedRMBwill be expected to stabilize and rebound, which is important for ChinaEconomyis a positive sign.

RMBA recovery in the exchange rate will bring a range of benefits. First, it will shrink China and the United StatesInterest ratesgap, which is a positive for China's central bank. China's central bank began to cut interest rates last yearRRR cutmeasures to stimulateEconomy, which makes domestic banksDeposit interest ratesdeclined, but at the same time, the Fed has adopted a strategy of raising interest rates. And with the Fed's interest rate cuts, China and the United StatesInterest ratesThe gap will be further narrowed, which will help attract capital back to China and stimulatedomestic economydevelopment. More capital repatriation will create a more stable environment for China's capital market and foreign trade exports, and boost the confidence of real enterprises.

The dollar weakened in pairsThe market has a positive impact. withU.S. dollar indexBroke through the high of $2,000. Investmentsbegan to transfer funds toThe market seeks to preserve value and hedge against risk. So, against the backdrop of the Fed's rate cuts,The market is expected to continue**.

In addition, the United States** will also be affected by the positive impact of interest rate cuts. The interest rate cut will reduce the cost of business loans, stimulusInvestmentswithEconomyIncrease. This could further push the U.S. for thatInvestmentsto create greater returns.

However, it is important to be wary that the US Treasury may take advantage of the decline in US Treasury yields to issue more bonds to fill the gapFiscal deficits。United StatesFiscal deficitsIt has widened, while debt levels continue to rise. If the United States issues bonds on a large scale, it may be a big deal for the United StatesEconomyand even around the worldEconomyBring a new shock.

Looking ahead, changes in the direction of the US dollar will have an impact on the worldEconomyMake a big impact. As the main one in the worldReserve currency, the trend of the US dollar has a direct impact on the global ** andFinanceMarket.

China is the second largest in the worldEconomyand important countries, we need to pay close attention to the changes in the trend of the US dollar and respond flexibly. Against the backdrop of a weaker dollar, China** can take steps to stabilizeRMBexchange rate, enhance the competitiveness of foreign countries. At the same time, China should also speed upFinanceThe pace of reform has been strengthenedFinanceThe vitality and resilience of the market for both domestic and foreign countriesInvestmentsto provide betterInvestmentsEnvironment.

ForInvestmentsIt is necessary to pay close attention to the changes in the market and grasp the opportunities. Against the backdrop of a weakening dollar, an increase in holdings can be considered, United States**, etcInvestmentsasset allocation to achieve betterInvestmentsRequite.

In short, the trend of the dollar towards the first will be on the globeEconomyMake a far-reaching impact. China as an important oneEconomyWe need to be flexible in responding to such changes, seizing opportunities, and turning challenges into opportunities. in stabilityRMBexchange rate, acceleratedFinanceAt the same time as reform, the active efforts of all parties will help promote ChinaEconomySustainable and healthy development.

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