Wall Street is turning bearish on the dollar, with major firms like Morgan Stanley and JPMorgan Chase predicting a peak in mid-2025 followed by declines. The dollar surged this year after Trump's election victory, fueled by tariff and tax cut expectations, but falling US real rates and rising global risk appetite may reverse this trend. Analysts also cite trade policy risks, a widening budget deficit, and reduced Fed support as potential drivers of dollar weakness. Emerging-market currencies and the euro have already felt the dollar's strength, though this dynamic may shift in the coming year.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Wall Street is turning bearish on the dollar with major firms like Morgan Stanley and JP Morgan
00:06Chase predicting a peak in mid 2025 followed by declines. The dollar surged this year after
00:12Trump's election victory fueled by tariff and tax cut expectations, but falling U.S. real estate and
00:18rising global risk appetite may reverse this trend. Analysts also cite trade policy risk,
00:23a widening budget deficit, and reduced Fed support as potential drivers of dollar weakness.
00:29Merging markets, currencies, and Euro have already felt the dollar's strength,
00:34though this dynamic may shift in the coming year.
00:36For all things money, visit Benzinga.com slash GSTV.