Barclays: US Tariff Decision May Benefit Risk-Sensitive Currencies

Barclays stated that the US Supreme Court's decision on tariffs poses a greater obstacle to the White House's efforts to set up trade barriers and is positive for global economic growth. Strategists, including Lefteris Farmakis, wrote in a report on February 22: "We believe this development primarily benefits higher-risk currencies in the foreign exchange market." They specifically highlighted high-yielding emerging market currencies, as well as fundamentally strong G10 currencies such as the Australian dollar and the Swedish krona. They wrote that the ruling also demonstrates that "the checks and balances mechanism in the US is functioning." All else being equal, this move will reduce investors' premium preference for US assets and the US dollar. "Nevertheless, the fiscal implications of this ruling are still worth watching, especially as tariff refunds could have a stimulative effect, which may require a response from the Federal Reserve."

Editor: Wang Yongsheng