According to Odaily, Vasileios Gkionakis, an economist at Aviva Investors, has indicated in a report that the US dollar could experience further appreciation if President-elect Donald Trump introduces new trade tariffs. Gkionakis notes that the recent rise in the dollar's value has been primarily driven by economic fundamentals, including robust US economic data and favorable interest rate differentials. The prospect of tariffs, while contributing to the dollar's rise, plays a significantly smaller role.
The report suggests that if these policies are implemented, there is potential for the dollar to strengthen further. Import tariffs could lead to increased inflation and widen the interest rate differentials between the US and other countries. Additionally, tariffs might dampen market sentiment and weaken global economic growth expectations, thereby enhancing the dollar's appeal as a safe-haven currency. The extent of the dollar's appreciation will depend on the scope, scale, and timing of the tariff implementation.