Analyst: Dollar Depreciation Could Ease Inflation for U.S. Trade Partners

Odaily reports that Commerzbank analyst Thu Lan Nguyen predicts a decline in the value of the US dollar could lead to reduced inflation rates for America’s trade partners. Nguyen believes that Trump’s tariffs may spark this depreciation, potentially easing economic pressure on countries reliant on the dollar. According to Nguyen, if this trend persists, central banks will be less likely to face difficulties balancing economic and inflation risks. This dynamic could enable further interest rate cuts, thus alleviating the pressure on non-dollar currencies against the US dollar. She notes that, as of now, these tariff effects seem unlikely to reverse.