Vasileios Gkionakis, an economist at Aviva Investors, said in a report that the dollar could rise further if U.S. President-elect Donald Trump proposes new trade tariffs. He said the dollar's recent appreciation has been driven primarily by economic fundamentals, including strong U.S. economic data and favorable interest rate differentials. The prospect of tariffs may contribute much less to the dollar's gains. This suggests that the dollar has room to strengthen further if these policies are implemented. Import tariffs could push up inflation and widen the interest rate differential between the United States and the rest of the world. Tariffs could also weaken market sentiment and weaken global economic growth expectations, boosting the dollar's safe-haven appeal. The extent of the dollar's appreciation will depend on the scope, size and timing of the tariffs. (Jinshi)

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