The Wells Fargo economists see a weaker dollar than before and believe that the USD has already entered a prolonged period of depreciation.
The depreciation of the dollar will accelerate in 2024
“Given the increased resilience of growth internationally and the hawkish turn of some foreign central banks in recent months (particularly the European Central Bank and the Bank of Japan), we believe that the USD has embarked on an extended period of depreciation.”
“In the near term, we expect the depreciation of the USD to be gradual as the US economy slips into recession, while the Fed hesitates to cut interest rates prematurely.”
“We expect the depreciation of the dollar to accelerate in 2024, as we believe the Fed will start cutting interest rates faster than foreign central banks.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
