# FX Daily: Falling interbank rates should drag the dollar lower | articles | ING THINK

> ING analysts say falling dollar interbank rates should pull the dollar lower as commercial paper issuance rises and 3-month dollar Libor drops to 0.88%. They forecast EUR/USD near 1.20 and USD/JPY near 100 by year-end, and expect US first-quarter GDP to contract sharply.

- Date: 2020-04-27 · published 2020-04-27T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/53819-fx-daily-falling-interbank-rates-should-drag-the-dollar-lower-articles-ing-think
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Lower dollar funding costs and a weaker dollar generally support US commodity prices in dollar terms. The analysts' forecast of a weaker dollar, combined with a sharp US growth contraction, would be a modest tailwind for export-linked grain and oilseed markets.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

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## Sources

- think.ing.com: https://think.ing.com/articles/fx-daily-falling-interbank-rates-should-drag-the-dollar-lower/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.