Week in Focus

25 April 2025: Will the Trump dollar weaken further?

The dollar has come under heavy pressure recently. This is because the Trump administration's policies are calling into question a number of factors that have contributed significantly to its high valuation to date. The dollar's future performance will therefore depend on Trump's actions. As he is likely to repeatedly back down in the face of strong reactions from the financial markets, a prolonged weakness of the dollar is not the most likely scenario. Instead, we expect it to stabilize at its current level. However, the downside risk for the dollar has increased.

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