Why Currency Volatility Could Be the Market’s ‘Achilles Heel’ in 2025

• 2025 will be dominated by currency volatility that could lead to a “sharp” correction, KKR said.
• Trade wars, fiscal instability, and geopolitical tensions will spur FX volatility.
• Currency jitters triggered market drawdowns in the late 1990s, KKR said.

Investors may be underestimating the threat to the bull rally posed by wild moves in the foreign exchange market.