Why currency volatility could be the market's 'Achilles heel' in 2025

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• 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.

KKR wrote in its 2025 outlook this week that currency swings...