Foreign Currency Exchange Forecasts Next 6-12 Months: Westpac FX Update
Westpac notes that there is a high degree of uncertainty over the global outlook and there is the possibility of further short-term net dollar gains on defensive demand. Overall, however, Westpac expects that the US currency will register net losses during the forecast period. As far as the US outlook is concerned, the bank does see the need for higher interest rates, especially given inflation trends. It notes; “Russia’s invasion of Ukraine is more of a threat to US inflation than activity. In this context, Westpac has increased its short-term outlook for interest rates with three rate increases expected by the
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