Credit Suisse slashes dollar call to US75c BEARISH bets for the dollar are turning savage, with Credit Suisse slashing its forecast to US75c after conceding the currency is "normalising" quicker than it expected. In one of the biggest dollar calls in the market by a major bank, Credit Suisse yesterday slashed its 12-month forecast to US75c. The move comes less than two months after the bank made one of the first downgrades in the market, cutting its forecast for the currency to US85c. "It has become clear to us that the process of 'normalisation' is occurring more quickly than even we had anticipated," said the bank's London-based head of commodities research, Ric Deverell. Today we revise our three-month forecast to US87c, and our 12-month forecast to US75c. In recent months experts have cut their dollar bets as the US Federal Reserve signals tapering its stimulus program and China slows, with National Australia Bank, Westpac and Goldman Sachs lopping targets last week. TD Securities also moved yesterday as it lowered its 2013 GDP forecast from 3 per cent to 2.7 per cent, predicting the dollar would trade around US90c for the rest of the year, compared to its prior year-end target of US96c. TD expects the dollar to trade between US85c and US90c over 2014, when it thinks the economy will grow at 3 per cent before potentially slowing to 2 per cent in 2015 due to the "substantial drag" following the peak in mining investment. The dollar has fallen about 13 per cent from above $US1.05 in April, allowing the Reserve Bank to keep interest rates on hold as the currency's dive takes pressure off the economy. But the bank said the dollar remained "high" and appeared determined for it to fall "to foster a rebalancing of growth in the economy" from mining to other sectors. The dollar fell below US91c this week after RBA governor Glenn Stevens said the board "deliberated for a very long time" before holding rates. Credit Suisse's Mr Deverell said mining investment, which peaked at 8 per cent of GDP earlier this year, may begin to fall in 2015 "just as quickly as it went up." "The fall in the Australian dollar trade-weighted index is currently occurring at a similar pace seen following the 1970s mining peak," he said. While on that occasion the exchange rate was not freely floating . . . that episode does well explain the potential for further substantial downside.