Dollar could rise if Trump implements tariffs: economist

The dollar could rise further if US President-elect Donald Trump proposes new trade tariffs, Vasileios Gkionakis, an economist at Aviva Investors, said in a report. The dollar's recent appreciation has been driven largely by economic fundamentals, including strong US economic data and favourable spreads, he said. The prospect of tariffs is likely to contribute much less to the dollar's rise. This suggests that there is room for the dollar to strengthen further if these policies are implemented. Import tariffs could push up inflation and widen spreads between the US and the rest of the world. Tariffs could also weaken market popularity and weaken global growth expectations, boosting the dollar's safe-haven appeal. The extent of the dollar's appreciation will depend on the scope, scale and timing of implementation of the tariffs.