Dollar’s fate depends on US inflation data and tariff policy — Investing.com

According to experts from Investing.com, the fate of the US dollar currently depends directly on how tariffs affect the country’s inflation data. The agency's analysts are also considering a scenario where the upcoming price increases in the country will be one-time and become an additional factor for the Federal Reserve (Fed) to lower interest rates.

As noted in a recent report by Bank of America (BofA) experts, the US currency depreciated significantly in the first half of the year. This was caused by economic and political tensions, as well as upcoming changes in global currency policy.

Currently, market participants expect US borrowing costs to decrease by approximately 28 basis points by September, though BofA experts remain cautious. According to the bank's analysts, current changes may prove insufficient to return the dollar to an upward trajectory. The agency added that the coming months will prove decisive for both the fate of the US currency and the prospects for lowering the Fed's borrowing costs.