
The Dollar is expected to weaken gradually in 2025 as relative-rate support peaks. National Bank strategists Stéfane Marion and Kyle Dahms expect support to hold through year-end, citing persistent U.S. inflation and the prospect of further Federal Reserve tightening. Weaker global risk appetite is also driving safe-haven demand, they note, while midterm elections present a medium-term headwind.
"The U.S. dollar remains supported by persistent inflation and the prospect of further Fed tightening."

"Following October’s pause, another firm CPI report reinforces our expectation for tighter policy before year-end, while a deterioration in global risk appetite could provide further support through safe-haven demand."
"We expect the dollar to remain supported through year-end before weakening gradually in ൭൫൭൲ as relative-rate support peaks."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)