Market analysis: A weaker dollar could lower inflation in U.S. trading partners

Thu Lan Nguyen, an analyst at Commerzbank, said a weaker dollar as a result of Mr. Trump's tariffs could reduce inflation in US trading partners. "If this continues, most central banks will not be caught in a dilemma: weighing economic and inflation risks," she said. This would allow for further interest rate cuts, thus reducing upward pressure on non-dollar currencies against the dollar. For now, the impact of tariffs appears highly unlikely to be reversed, she said.