The US dollar is currently standing at the edge of a change while encountering mounting pressure offloaded by the rise of other competitors’ currencies. The Chinese Yuan, which is now up by 6% against the US dollar, is also adding pressure to the USD. That being said, a new development is now weighing on the dollar: a scenario in which a looming Fed rate cut by 10% could isolate the dollar completely, making it helpless in the near future.

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State Street strategist Lee Ferridge has sounded a new alarm, the one that involves the US dollar undergoing a prolonged meltdown. According to Ferridge, the dollar is at a critical juncture and may drop to its lowest if the Fed rate cut scenario comes into play again. Ferridge thinks that if the Fed cuts rates aggressively this year, it may end up lowering the USD by nearly 10%. In general, the analyst shared how traders are expecting two rate cuts this year. However, a looming third-rate cut may also arrive this year if Trump continues to pressure the Fed to lower the rates sooner.

“Sell America’ signals eroding trust in the weakening US dollar, stocks & treasuries – expert. Investors, particularly foreign entities, are now openly dumping US treasuries and stocks while the dollar weakens, often moving into gold and similar hard assets,” veteran financial analystPaul Goncharoff tells Sputnik“

DOLLAR COULD DROP 10% IF FED CUTS MORE THAN EXPECTEDState Street strategist Lee Ferridge warns the dollar may fall 10% in 2026 if the Fed cuts rates more aggressively than markets anticipate under a new chair. Traders expect two cuts by year-end, but a third is possible amid…

This drop can be compared to its othercurrency competitors,particularly the euro, pound, yen, Canadian dollar, Swedish krona, and Swiss franc.

According to Cambridge Currencies USD stats, the US dollar may drop to nearly 94-98 by mid-2026. Moreover, the portal predicts the index to hit the 92-97 value range, driven by policy changes and geopolitical uncertainties.

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Source: Watcher Guru