The dollar’s surge, fueled by President-elect Donald Trump’s policies and interest-rate cuts, is facing a potential reality check. Morgan Stanley predicts the dollar will drop below current levels by December 2025. Societe Generale also warns of a significant decline, foreseeing the ICE US Dollar Index falling 6% by year-end.
Several Wall Street firms, including JPMorgan Chase, are now forecasting a peak in the dollar’s value as early as mid-2025, followed by a decline. This shift in sentiment suggests that investors and analysts are reevaluating the dollar’s prospects amidst Trump’s economic policies and the Federal Reserve’s monetary decisions.
Source: https://www.bloomberg.com/news/articles/2024-12-15/dollar-s-trump-fueled-gains-face-a-reality-check-late-next-year