US Dollar's dominance will end if Fed gives in to market whims - Reuters poll

The US Dollar's dominance will end if the US Federal Reserve (Fed) gives in to pressure from the White House and financial markets and reduces interest rates by 50 basis points this year, according to the latest poll of 60 analysts.

The central bank cut rates by 25 basis points last week but the US Dollar remained bid as the Fed President Powell referred to the rate cut as mid-cycle adjustment and refrained from signaling further easing.

The Dollar, however, would weaken if the Fed delivers 50 basis point rate cut by year end, as suggested by the CME Fed Watch.

Noably, a report by Reuters says more than 40% of the strategists who answered a separate question said a change in Fed policy expectations would drive the currency from here.