Bracing for weaker US dollar

THE US dollar looks set to face a weaker path into the year-end, with traders eyeing September as the start of a US Federal Reserve (Fed) rate-cutting cycle – strategists are warning that the move could mark the beginning of a longer-term shift in the currency’s fortunes.

The latest US consumer price index data landed almost exactly where markets had expected: up 0.2% month-on-month (m-o-m) and 2.7% year-on-year (y-o-y in July, with core inflation a touch higher at 0.3% m-o-m (3.1% YoY).