CoinVoice has recently learned that according to Jinshi, Aviva Investors economist Vasileios Gkionakis said in a report that if US President-elect Donald Trump proposes new trade tariffs, the US dollar may rise further.
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 is likely to have contributed much less to the dollar's gains.
This suggests that if these policies are implemented, the dollar has room to strengthen further. 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. [Original link]
