NEW YORK, Sep 5 Reuters The U.S. dollar39;s decline is gaining speed as anticipated interest rate cuts by the Federal Reserve threaten to end the greenback39;s yearslong period of strength.

The dollar has fallen 5 from its 2024 highs, close to its lowest level in about a year against a basket of its peers following a sharp drop last month.

The reason is an imminent drop in U.S. interest rates. For years, a robust U.S. economy and persistent inflation kept rates far above those of other developed countries, making dollarbased assets more attractive and keeping it elevated even after the currency hit a twodecade high in 2022.

That yield advantage is set to diminish now that inflation has cooled and Fed Chairman Jerome Powell said last month the time has come to start cutting rates, a process expected to kick off at the central bank39;s Sept. 1718 monetary policy meeting.

We39;ve always had the view that almost regardless of other circumstances, once the Fed starts cutting rates, that the dollar would lose ground, said Brian Rose, senior U.S. economist at UBS Global Wealth Management. We still have that view.

Getting the dollar39;s trajectory right is important for investors due to the currency39;s central role in global finance. A weaker dollar could make U.S. exporters39; products more competitive abroad and lower costs for multinational companies converting foreign profits into greenbacks.

How much further the dollar falls over the long term could depend on how…