Well-known Russian economic analyst Oleg Serovatkin predicted a decline in the value of the dollar due to higher interest rates in the United States.
Oleg Serovatkin, senior global research analyst at Otkirty Investments, pointed out that the dollar’s gains over the past year have been linked to widening credit spreads, but that they could begin to narrow in the coming weeks, and this, along with other factors, could lead to a depreciation of the dollar.
The expert pointed out that since the beginning of last summer, the spread between the euro/dollar pair has decreased from $1.22 per euro to the current $1.02. This is due to the expectations of more and more wide-ranging interest rate hikes in the US. However, now these expectations have completely disappeared, and the market has begun to wait for lower interest rates in the US from the spring of 2023.
Against this background, expert Serovatkin expects a possible new wave of dollar depreciation at least in the coming weeks, explaining that “this could happen against the backdrop of a possible decrease in credit spreads and the forced closure of dollar purchase transactions by large speculators. “
Source: RIA Novosti