Mitsubishi UFJ: Fed rate decision boosts near-term outlook for the dollar

The December 19th Golden Ten Data reported that Mitsubishi UFJ analyst Lee Hardman stated in a report that the latest Interest Rate decision by the Federal Reserve has increased the likelihood of further appreciation of the US dollar in the first half of 2025. It is expected that the US Interest Rate will be maintained at a higher level for a longer period of time, thereby creating greater policy divergence with other major Central Banks. Expectations of widening policy divergences, coupled with the imminent risk of higher tariffs at the beginning of Trump's second term, will continue to put upward pressure on the US dollar next year.