Economists at Wells Fargo expect US Dollar depreciation to be modest during Q4-2023, but pick up pace over the course of next year.

Greenback could be relatively stable in the near term

“The greenback could be relatively stable in the near term, as some additional Fed tightening combined with the potential for mildly unsettled markets could provide temporary support for the greenback.

However, we expect the US currency to eventually come under pressure as aggressive Fed easing starts from early 2024.” 

“We forecast the trade-weighted Dollar to soften 1.5% over the balance of 2023, and by a further 5% in 2024.”