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.
