[Analyst Says Fed Rate Cuts May Lower Hedging Costs, Dollar Could Fall Next Year] ING analyst Chris Turner stated in a webinar that expectations of further rate cuts by the Federal Reserve could lower hedging costs, potentially leading to a decline in the dollar next year. He noted that lower interest rates would make it cheaper for European investors to hedge U.S. asset costs, which could increase the hedging ratio of dollar assets and weigh on the dollar exchange rate. ING expects the Federal Reserve to cut rates by 75 basis points and predicts that the euro will rise to 1.22 by the fourth quarter of 2026, driven by expectations of German fiscal stimulus or accelerated economic growth in the eurozone.