Mitsubishi UFJ: The dollar is likely to record its worst annual performance since 2017

Mitsubishi UFJ analyst Lee Hardman stated in a report that the dollar is expected to record its worst annual performance since 2017 and face further weakness next year. The dollar index is projected to decline by 9.3% this year. Its declines this year and in 2017 coincided with the early period of President Trump's term.

Hardman pointed out that the dollar regained some ground in 2018, rising by 4.4%, but a similar recovery is unlikely in the coming year. He believes that "as the Federal Reserve continues to cut interest rates, while other G10 central banks have ended their easing cycles, the yield spread between U.S. Treasuries and those of other major economies will continue to narrow." (Jin Shi)