Wall Street is betting the US dollar will make further gains after its recent storming rally, even hitting parity with the euro, in a challenge to President-elect Donald Trump’s stated desire for a weaker currency.

The dollar has soared 6.1 per cent since the start of October, its best quarter since the early stages of the Federal Reserve’s interest rate raising campaign in 2022, as markets began to expect the Republican candidate would win November’s election and implement his plans for trade tariffs and tax cuts.

More than half of all major banks surveyed by the Financial Times, including Goldman Sachs, Morgan Stanley and UBS, are forecasting the dollar will rise even further next year. Deutsche Bank expects it to reach parity against the euro in 2025, having already strengthened from $1.11 at the start of October to less than $1.05.