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Bank of America: The dollar may remain strong in the short term but is expected to weaken in the second half of the year
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2025-01-08 23:02 8,179
Golden Finance reported that the U.S. dollar is the most overvalued G-10 currency. Due to the outlook for U.S. President-elect Donald Trump’s inflation policy, the U.S. dollar is likely to remain strong in the short term, Bank of America foreign exchange strategist Athanasios Vamvakidis said in a report expressed in. He said that after strong U.S. data and Trump's election victory, market expectations for the Federal Reserve to cut interest rates have weakened, and the dollar's recent strength has reached "historical extremes." The dollar should remain strong in the first half of 2025. However, the dollar is likely to weaken in the second half of the year as Trump's policies, including trade tariffs, "take a toll on the U.S. economy and the rest of the world reacts."
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