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Analysis: US Dollar Expected to Find Temporary Relief After Tariff-Driven Inflation Surge

Analysis: US Dollar Expected to Find Temporary Relief After Tariff-Driven Inflation Surge

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金色财经金色财经2025/07/02 21:22

According to a report by Jinse Finance, ING strategist Chris Turner stated that after tariffs drive up inflation and force the Federal Reserve to delay rate cuts, the US dollar is set for several months of gains. Turner noted that following a downward spiral earlier this year, the dollar is expected to receive temporary support, as trade tariffs will accelerate consumer price increases starting in August, limiting the Fed’s ability to cut rates. During this period, he anticipates the euro-dollar exchange rate will briefly fall to the 1.13-1.15 range, while the yen-dollar rate will drop to 145-150. This implies that both the euro and yen will decline by about 4%. “We believe the Fed may keep rates unchanged until December,” Turner said. “At that point, the dollar might see a slight adjustment.”

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