The U.S. dollar entered 2025 on a bombastic note and surged in the charts, defying all odds. The greenback trounced leading local currencies like the Indian rupee, Chinese yuan, and Japanese yen, pushing them to new lows. Read here to know how the Indian rupee is struggling to maintain pace with a stronger USD. This development indicates that currency investors are showing confidence in the USD this year. In this article, we will highlight a price prediction of how the U.S. dollar could perform in 2025.
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Currency Markets 2025: U.S. Dollar Price Prediction
Leading global investment bank JP Morgan recently published a price prediction about the performance of the U.S. dollar in 2025. According to the trillion-dollar bank, the USD could lose wind at some point in 2025 and might begin to decline in the charts. The DXY index, which tracks the performance of the U.S. dollar, shows the currency comfortably trading at the 108.26 mark. It touched a new high of 109.53 recently and is hovering close to its ATH range.
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JP Morgan wrote in its report that the U.S. dollar’s ascension is unlikely as it’s two standard deviations above its 50-year average. The development suggests that the move has limited room for the USD to scale up further in the indices. Therefore, the price prediction for the U.S. dollar provided by JP Morgan for 2025 is mostly negative.
“Currently, the U.S. dollar is two standard deviations above its 50-year average, suggesting limited room for further appreciation,” wrote the bank in its 2025 price prediction report. “Historically, the dollar has alternated between periods of strength and weakness, making a downturn likely at some point, though the timing is uncertain.”
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“Additionally, the U.S.’s persistent trade balance deficit, at 4.2% of GDP as of September 2024, poses a long-term constraint, highlighting a structural challenge that could eventually pressure the currency.” The bank added, “Even with the factors supporting the U.S. dollar, its ascent is unlikely to continue indefinitely,” it wrote in its 2025 price prediction report.
