The dollar is the most overvalued G-10 currency, and due to the inflation policy outlook under President Donald Trump's administration, the dollar may remain strong in the short term, according to Forex strategist Athanasios Vamvakidis at Bank of America in a report. He noted that following strong U.S. data and Trump's election victory, market expectations for a Federal Reserve rate cut have lessened, and the dollar's recent strength has reached "historical extremes." The dollar should remain strong in the first half of 2025. However, due to Trump's policies (including trade tariffs) "impacting the U.S. economy while other countries respond," the dollar may weaken in the second half of the year.