According to Jinshi Data, a latest survey shows that the US dollar will gain a foothold in early 2025, but will face the risk of faster inflation and a surge in fiscal deficits in the United States in the coming year.
Among the 89 respondents, 38% were concerned that the deficit would have the greatest impact on the US dollar, and 32% believed that if Trump implemented tariff measures, it would lead to weak economic growth and put pressure on the US dollar.
While short-term policies may strengthen the dollar, the long-term economic blow will curb its appeal. About 70% of respondents believe that the dollar index will rise in the next month.
Confidence in the dollar before the end of the year comes from U.S. Treasury yields being supported by the Federal Reserve's patient interest rate cuts and safe-haven buying caused by uncertainty about Trump's economic policies.