Banks Say Trump's Victory Is Dollar-Bullish

A number of international banks said that Donald Trump's victory for a second presidential term in the United States is dollar-bullish, despite the Republican candidate's recent statements that he prefers a weaker U.S. currency.

Deutsche Bank stated that it would be very difficult to engineer a more flexible currency, because intervention or policies aimed at encouraging massive US capital outflows would cost trillions of dollars.

In turn, Morgan Stanley confirmed that Trump's proposed policies would push the dollar higher, while Barclays Bank recommended that clients take advantage of the recent weakness of the dollar to re-enter buying deals, indicating that it is likely that the tariffs that Trump intends to impose on China will strengthen the price of the dollar by up to 4% against the Chinese yuan.

As of today, 1 United States Dollar equals 7.27 Chinese Yuan.

However, some analysts said that Trump’s potential return to power may bring about a weaker dollar, if he resorts to cryptocurrencies.