The US Dollar has seen the sharpest sell off since November 2023 and as was the case with that sell-off last year, this has coincided with a peak in US rates, which has led to a dramatic decline in those yields.

In this video, Lee Hardman, Currency Analyst at MUFG, discusses the impact of the sell off as a reflection of investor optimism that the Federal Reserves has ended its cycle of rate hikes and that investors are expecting a softer landing for the US and global economies. As a result, attention is now turning to the likelihood of further rate reduction from the Fed in the upcoming year.

Key points

• 00:18 - What has triggered the USD's recent heavy sell off?
• 01:29 - Do you expect the USD to continue to weaken sharply heading into year end?

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