Athanasios Vamvakidis, the Global Head of G-10 Forex strategy at Bank of America, indicated that the dollar is overvalued, supported by US policies, especially tariffs. It will remain strong in the first half of this year but is expected to weaken later in the year. 'We expect the dollar to remain strong in the short term under the backdrop of US inflation policy, particularly tariffs, but later in the year, as other countries respond, these policies will impact the US economy causing the dollar to weaken.'