Capital Economics says the dollar is likely to fall further in the coming years as the dollar's valuation remains relatively high and is buffeted by adverse spreads and reduced safe-haven demand. Economist Shivaan Tandon said in the report that the Federal Reserve is likely to cut interest rates more than other countries, meaning spreads are likely to continue to weigh heavily on the U.S. "We also expect risk appetite to remain strong, indicating continued pressure on the dollar." Despite recession fears, the U.S. economy appears set for a soft landing. Capital Economics expects the dollar index DXY to fall to 98 by the end of 2025.