Mitsubishi UFJ: The US dollar may fall further in 2026.

Derek Halpenny of Mitsubishi UFJ Financial Group (MUFG) Bank said in a report that the US dollar is expected to face further depreciation next year, but the pace of depreciation will be more moderate compared to this year. "We basically believe that the US dollar has reached its peak and is currently in a downward trend that has lasted for many years." MUFG predicts that the DXY US dollar index will fall by 5% next year, consistent with its forecast of 1.24 US dollars for the euro. The bank believes that the Federal Reserve will cut interest rates three to four times, while the European Central Bank will keep rates unchanged. The DXY US dollar index fell by 0.1% to 98.485. Data from the London Stock Exchange Group shows that the index is expected to fall by 9% this year, the largest decline since 2017. The euro rose by 0.2% to 1.1733 US dollars.