Trump’s Tweets Aren’t Expected to Hold Down the Dollar
- John R. Taylor points to international demand for U.S. yields
- ‘We are still overweight dollars,’ says Graf at State Street
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When it comes to the dollar and President Donald Trump’s signals that he’d prefer it to be weaker, as the Rolling Stones sang, “You Can’t Always Get What You Want.”
That’s the take from strategists at State Street Bank & Trust and John R. Taylor, formerly head of what was once the world’s biggest currency hedge fund. Part of the support for that thesis includes expectations for robust U.S. growth (even if tit-for-tat tariffs play out) that will keep the Federal Reserve hiking rates. Against that backdrop, the dollar has gained almost 6 percent since mid-April.