Market Analysis: The depreciation of the dollar may reduce the inflation rate of US trade partners

Analyst Thu Lan Nguyen from Deutsche Bank stated that due to Trump's tariff policy, the depreciation of the dollar could potentially lower inflation rates for U.S. trade partners. She said: "If this situation continues, most central banks will not be caught in a dilemma: balancing economic and inflation risks." This would allow further interest rate cuts, thereby reducing the upward pressure on non-dollar currencies against the dollar. She stated that as it stands now, it seems highly unlikely that the impact of tariffs can be reversed.