Trump’s re-election has solidified the dollar’s rally, with the U.S. dollar index holding strong. Expectations are high for policies like increased tariffs on China, tax cuts, and deregulation, all of which could support the dollar further by reducing the trade deficit, boosting inflation, and tightening the labor market.

The euro faces pressure from weak growth and Germany’s coalition struggles, while China’s yuan remains under strain despite a 10 trillion yuan fiscal stimulus. With Trump’s agenda likely to increase inflation and borrowing costs, analysts see the dollar’s strength holding steady through at least the first half of 2025.