Express
Analyst: Trump Policies May Weaken Periodic Support for US Dollar
Summary: According to reports from sources, Jill Hirzel of Insight Investment stated that the US dollar may weaken as Trump's policies diminish the attractiveness of the US exceptionalism, potentially leading to reduced capital inflows. Hirzel mentioned that policy uncertainty and a more aggressive 'America First' agenda could erode the periodic support for the dollar, causing it ...
According to reports from sources, Jill Hirzel of Insight Investment stated that the US dollar may weaken as Trump's policies diminish the attractiveness of the US exceptionalism, potentially leading to reduced capital inflows. Hirzel mentioned that policy uncertainty and a more aggressive 'America First' agenda could erode the periodic support for the dollar, causing it to enter a sustained period of weakness. However, she cautioned investors to remain cautious when betting on a dollar decline through short positions, as growth outside the US is expected to be weak at best, and speculators may already hold significant short positions on the dollar. Additionally, real interest rates, adjusted for inflation, may remain high until signs of significant economic weakness emerge to concern policymakers.
