The dollar could weaken by year-end as the Federal Reserve probably won't raise interest rates as markets anticipate, MUFG Bank analysts say in a note. New Fed Chairman Kevin Warsh's tough rhetoric on inflation fueled bets the Fed could lift rates. However, the Fed is likely to keep rates on hold, the analysts say. "U.S. inflation appears close to peaking and should moderate through the remainder of the year thereby easing pressure on the Fed to respond forcefully." Disinflationary pressures should build on lower energy prices and the fading effects of last year's tariff increases, they say. The potential for improved growth outside the U.S. should also weigh on the dollar, they say. (renae.dyer@wsj.com)