Nomura Predicts Stronger Dollar in 2025 Amid Economic Challenges

Forecast for the US Dollar Strengthening in 2025

According to a recent report by Odaily, Nomura Securities' global foreign exchange strategy team is predicting a potential strengthening of the US dollar by the year 2025. This forecast is based on several key themes that are expected to influence the currency markets in the upcoming year.

Key Themes Influencing Currency Markets

The analysis conducted by Nomura highlights specific trends that could affect the strength of the US dollar:

The Federal Reserve's Interest Rate Policies: One of the primary factors poised to impact the US dollar is the Federal Reserve's ability to reduce interest rates. Persistently high core inflation in the United States is likely to complicate the Fed's efforts to maintain an effectively balanced monetary policy.
Impact of Political Policies: Tariff policies anticipated from President-elect Trump are also expected to play a significant role in shaping the economic conditions under which the dollar will operate.

Currency Performance Predictions for 2025

Nomura's report suggests that several currencies may underperform in the first half of 2025, while others could experience better performance:

Underperforming Currencies

South Korean Won
Thai Baht
Singapore Dollar
Swiss Franc
Swedish Krona

Stronger Performing Currencies

Indonesian Rupiah
Japanese Yen
Norwegian Krone

The Global Economic Landscape

This analysis from Nomura highlights the interaction of various global economic factors and how they might influence the performance of different currencies. Investors and traders should remain vigilant and consider these forecasts when strategizing their currency portfolios.

Final Thoughts

As we approach 2025, the landscape for currency markets continues to evolve. Emphasizing the critical factors at play can enable better forecasting and investment decisions. Keep an eye on the developments in the US economy and global political dynamics as they are likely to be pivotal in shaping the future economic conditions.