Dollar index (DXY) forecast: Will it challenge expectations in 2025? - London Business News | Londonlovesbusiness.com
Briefly

The U.S. Dollar Index (DXY) is at 108.40 points, reflecting a 7% annual gain in 2024, attributed to high U.S. interest rates and a stable economic outlook.
The Federal Reserve's cautious stance on interest rate cuts in 2025 supports high yields on U.S. Treasury bonds, further reinforcing the dollar's strength.
Geopolitical tensions, particularly in the Middle East and Russia-Ukraine, have heightened demand for the U.S. dollar as a safe haven, attracting risk-averse investors.
With Donald Trump’s growth-friendly policies, including tax cuts and higher tariffs, expectations of continued economic activity bolster demand for the dollar, supporting its stability.
Read at London Business News | Londonlovesbusiness.com
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