| One of the big market stories of 2024 has been the strength of the dollar, which is headed for its biggest annual rally since 2015. There's a growing sense on Wall Street, though, that the upbeat mood about the US currency is unlikely to last the course of 2025. Banks including Morgan Stanley, JPMorgan Chase and Bank of America are among those forecasting a peak for the greenback in the middle of next year. Societe Generale sees the ICE US Dollar Index falling by 6% a year from now. The greenback's strength has been "stomach churning," said Kit Juckes, the head of currency strategy at Societe Generale. "We're driving the price of an asset up to something that is not sustainable over the long-term." Gains have been fueled by Donald Trump's election victory and a resilient US economy leaving the Federal Reserve with less room to cut interest rates. Among the reasons for a swoon at some point: The budget deficit may start to weigh on sentiment and Trump's tariffs may not prove as sweeping as advertised. The global economy also may hold up after foreign central banks eased monetary policy, allowing investors to look elsewhere for returns. Other experts see risks to further dollar strength from Trump's trade policies even if they do get enacted, since tariffs would theoretically jolt prices higher for any imported goods used by US manufacturers. "If tariffs make steel and aluminum more expensive, that'll be a negative supply shock for the onshore auto industry that use those imported inputs," said Barry Eichengreen, an economist at the University of California at Berkeley who has spent decades studying the global monetary system. Of course, one big risk to bearish dollar forecasts: The Fed could end up keeping rates higher for even longer, which would make it more lucrative to keep dollars in the bank. In a note dated Sunday, Goldman Sachs said it no longer expects the central bank to lower rates in January. In the meantime, Asian economies are among those seeking to protect themselves against the fallout from a robust dollar. Investors are focusing on opportunities in select chipmakers and bank stocks, as well as dollar-denominated debt. —Carter Johnson, George Lei and Anya Andrianova | 
Mashadipati Location Hotel Clove is located in the heart of Bandung, in a ...
No comments