The US dollar is on track for its strongest year since 2015, fueled by robust economic growth, a cautious Fed rate-cut outlook, and Trump’s tariff threats. The Bloomberg Dollar Spot Index has surged over 7%, outpacing all major currencies. “The dollar’s strength reflects the US economy’s resilience,” said Barclays’ Skylar Montgomery Koning. “Higher US rates compared to peers sustain its dominance.” While Wall Street sees further gains in 2025, global growth recovery could weigh on the dollar later. The yen, krone, and NZ dollar have fallen over 10% this year, while the euro nears $1.04, with parity risks ahead. Bullish dollar bets hit $28.2 billion, the highest since May. Goldman Sachs notes upside risks if US growth remains strong despite protectionist measures.