Experts Dismiss Fears of Dollar Sell-Off Amid Trump Tariffs

Amid escalating global trade tensions sparked by the return of high tariffs under former US President Donald Trump, financial experts have dispelled concerns of a large-scale sell-off of dollar-denominated assets. While trade policies have raised questions about financial repercussions, industry specialists assert that the US dollar will retain its stability.

Ajay Bagga, a banking and market expert, told ANI that there is no direct link between tariffs and the liquidation of dollar assets on a global scale. He noted that although Trump's tariff strategies aim to weaken the dollar, factors such as the country's mounting debt and anticipated Federal Reserve rate cuts contribute more prominently to the dollar's potential weakness.

Echoing these sentiments, Sonal Badhan from the Bank of Baroda stated that the dollar is likely to hold steady, despite uncertainty surrounding tariffs potentially delaying Fed rate cuts. She indicated that the impact of tariffs on exports like those of Japan could influence demand for alternative currencies, such as the Japanese yen. Overall, despite short-term pressures, the dollar's status as a leading reserve currency remains secure. (ANI)

(With inputs from agencies.)