Scotiabank: The US dollar will continue to weaken until 2026, with the Federal Reserve expected to cut interest rates to 3%

According to Jin Ten, the team at Scotiabank stated that the US dollar has weakened against most currencies this year, but this comes after years of appreciation.

Analysts Sean Osborne and Eric Theoret believe that the dollar will generally weaken, expecting this trend to continue into 2026 and extend into 2027. Scotiabank expects the Federal Reserve to lower the target rate to 3% in the first half of 2026.