Bank of America: The dollar may remain strong in the short term, but is expected to weaken in the second half of the year

the US dollar is the most overvalued G-10 currency. Due to the inflation policy prospects of US President-elect Donald Trump, the dollar may remain strong in the short term, according to Athanasios Vamvakidis, a foreign exchange strategist at Bank of America. He said that after strong US data and Trump's election victory, market expectations for a Fed rate cut have weakened, and the dollar's recent strength has reached a "historical extreme". The dollar is expected to remain strong in the first half of 2025. However, due to Trump's policies (including trade tariffs) "affecting the US economy, while other countries in the world react", the dollar may weaken in the second half of the year.