No. of Recommendations: 2
I would not bet the rent on it, but if the high US tariffs last then I would expect the direction of the US dollar to be up, not down as we saw as a first reaction. Along with the more obvious results of a weakening US economy, rising inflation, and falling equity prices.
Jim,
I did not understand this part. Rising inflation should weaken the dollar unless the Fed raises interest rates commensurately. If there is a massive recession in US and rising unemployment, then they won't. Perils of their "dual mandate".
Unless you're saying that other countries would be much worse off than US, and their currencies will fall in relation to a US dollar whose purchasing power goes down less.
