The dollar, the most overvalued G-10 currency, is likely to remain strong in the short term due to President-elect Donald Trump's inflationary policy outlook, Bank of America foreign exchange strategist Athanasios Vamvakidis said in a note. He said the dollar's recent strength had reached "historic extremes" following strong US data and weaker market expectations of a Federal Reserve rate cut following Trump's election victory. The dollar should remain strong in the first half of 2025. However, the dollar is likely to weaken in the second half as Trump's policies, including trade tariffs, "take their toll on the US economy and the rest of the world responds".