U.S. Dollar Could Weaken If Fed Shifts to Quantitative Tightening, Deutsche Bank Says

According to Deutsche Bank analyst George Saravelos on July 16, the U.S. dollar could weaken if the Federal Reserve shifts its focus from rate hikes to quantitative tightening to tighten monetary policy. Saravelos noted that Japan's experience is instructive: despite slow interest rate increases, the Bank of Japan reduced liquidity through record-pace quantitative tightening, yet the yen remains near historic lows.
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