Deep Dive: A potential second Trump term spells uncertainty over strength of the US dollar

Path to weaker dollar 'will not be smooth'

The potential return of Republican nominee Donald Trump to the White House could spark a period of weakness for the US dollar, as his calls for intense trade tariffs raise concerns over the greenback's international standing.

Ever since stepping up his presidential campaign over the summer, Trump has promised to bring the US economy "back on track", and threatened to unleash tariffs on trade partners, as well as declaring he should have a say over the Federal Reserve's monetary policy. On currency valuation, both Trump and his vice-presidential candidate, JD Vance, have argued in favour of a weaker dollar that would help revive the country's manufacturing base. On Tuesday (20 August), the US dollar index hit the lowest value since the beginning of the year at 101.44, according to data from MarketWatch, fol...