Fitch Sees Easing Policy Risks Bolstering US Banks and Dollar

Fitch Ratings said U.S. banks are likely to encounter fewer operating and profitability headwinds following recent policy reversals that have eased regulatory and macro-economic uncertainty. The credit-rating company did not specify which policy changes it was referring to, but noted that the shift has improved the outlook for lenders’ earnings and capital positions. Separately, Fitch reported that the U.S. dollar is showing signs of stabilising as policy uncertainty subsides. The agency indicated that a clearer policy framework is helping damp volatility in the currency market, supporting expectations for steadier exchange rates in the near term.