BofA Securities sees US dollar uptrend forming

For most of 2025, the greenback was in a downtrend, but BofA Securities has seen signs of a reversal.

On Wednesday, the Dollar Index rose to 98.5 against major currencies. Still, it has fallen almost 10% so far this year.

In its latest reports, BofA highlighted that the US dollar-Canadian dollar and US dollar-yen currency pairs showed the highest potential for the greenback's downtrend reversal.

The US dollar-yen exchange rate maintained steady gains throughout July trading sessions due to a lack of negative US economic data. European and Asian investors grew more bullish on the currency pair, likely influenced by toughening US trade rhetoric.

The current trend suggests the exchange rate could rise above 150 yen soon. BofA remains bullish on the dollar this week, as economists expect strong US inflation and retail sales data.