Now that the US Federal Reserve is guiding for only two rate cuts in 2025, down from the four it guided in September 2024, the US central bank’s more hawkish stance is currently better reflected in the USD, he adds.
After experiencing a strong 2024 with the US exceptionalism narrative helping to strengthen the US dollar (USD) against every other G10 currency, the USD could see a peak in 2025 but in the later part of the year, says Bank of Singapore’s (BoS) currency strategist, Sim Moh Siong.
“The buzz this time last year was that 2024 could see USD trending sideways or weaken. But things could not be more different,” the analyst writes in his Jan 6 report.
