Dollar Set for Decline as Fed Rate Hike Risks Mispriced

A warning has been issued by TD Securities that the US dollar will weaken if the Federal Reserve leaves interest rates unchanged this week.

TD Securities strategist Howard Du believes the market is mispricing the risk of rate hikes heading into Wednesday's policy meeting, which could lead to a decline in the greenback's value.

The exact extent of the dollar's drop will depend on whether all of the central bank's decision makers are in agreement with Fed Chairman Kevin Warsh, according to Du.