Analyst: US-Japan intervention triggers continued decline of the dollar, fundamentals remain relatively positive

According to Jinshi reports, on Monday, the dollar continued its downward trend due to joint intervention in the foreign exchange market by the U.S. and Japan, which supported the yen. Francesco Pesole, a foreign exchange strategist at ING, stated that the market's doubts about the new Federal Reserve Chairman Walsh's ability to combat inflation are the root cause of the dollar's weakness. He pointed out that many traders are considering establishing long-term short positions on the dollar, but believe that Japan's intervention is only a temporary measure, and the true determinant of the dollar's trend will still be the Federal Reserve's policy.

Jefferies strategist Mohit Kumar stated that the pressure for interest rate hikes from the Federal Reserve will continue to increase.