Analysts: Trump's policies could weaken the dollar's cyclical support

Jill Hirzel of Insight Investment said in the report that the dollar may weaken as Trump's policies reduce the appeal of American exceptionalism and may lead to a reduction in capital inflows into the United States. Policy uncertainty and a more aggressive America First agenda could erode the cyclical support for the dollar, leading to a period of sustained weakness, "Hirzel said. However, she also pointed out that investors should exercise caution when over-betting on the dollar's decline through short positions, as growth outside the United States is expected to be weak at best, and speculators may already have large short positions in the dollar. In addition, real inflation-adjusted interest rates are likely to remain high until there are signs of economic weakness that are enough to worry policymakers. (Jin Ten)