MUFG forecasts the US Dollar Index will decline 5% in 2026 as the Fed is expected to cut rates up to four times, with the euro-dollar rate projected to surpass $1.20 for the first time since 2021.
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Global central banks are set to review their monetary policy stances, with S&P projecting the Bank of Korea will hold off on rate cuts until 2025.
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Bank of Korea maintains benchmark rate at 2.75% amid economic uncertainties, with analysts divided on timing of potential rate cuts to 2.25% by year-end
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