Financial Times: “Why is this happening? The orthodox view was that tariffs were positive for the dollar because they are inflationary — and therefore keep rates high — and make the US currency scarcer.”
“However, the dollar’s recent weakness could be indicative that these factors are getting swamped by broad and growing international misgivings over the US. The madness behind the methodology of the recent tariffs certainly doesn’t encourage faith in the coherence of US policymaking. Many analysts are alarmed, but probably none more than Deutsche Bank.”
Said George Saravelos, head of FX strategy at Deutsche Bank: “We are becoming increasingly concerned that the dollar is at risk of a broader confidence crisis.”
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