Société Générale: Dollar May Remain Range-Bound if Fed Stays Steady This Year

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On April 7, Société Générale analyst Kit Juckes stated in a report that if the Federal Reserve maintains interest rates unchanged for the remainder of the year, the dollar may exhibit range-bound fluctuations. He noted that the market expects all G10 central banks, except the Fed, to raise interest rates. Despite this, only Sweden’s projected growth rate among G10 economies exceeds that of the United States this year. These interest rate expectations limit the extent of the dollar’s appreciation. Conversely, if the Fed significantly cuts rates amid high inflation and loose fiscal policies, the dollar is likely to decline.

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