There are two reasons why the US dollar could depreciate under Trump's rule
The two main reasons why the US dollar could depreciate under Donald Trump's rule are:
1. Increased inflationary pressure: Trump's policies, including increased tariffs and tax cuts for businesses, could raise the cost of goods and drive inflation. As inflation rises, the US Federal Reserve (Fed) may not be able to cut interest rates as anticipated, thus putting pressure on the US dollar, forcing investors to adjust their expectations for real yields.
2. Increasing budget deficit: If Trump's tax policies are implemented, it could lead to an increased public budget deficit. Diligent officials have warned that this could diminish the dollar's attractiveness in the long term, especially when the market is concerned about the government's ability to repay debt.
These factors are likely to affect the value of the dollar in the global market in the near future.