The newly minted U.S. president appears hellbent on beating back the U.S. dollar.
Furthermore, and at least one analyst is predicting more pain ahead for the U.S. dollar.
In recent weeks, political risk, namely, jawboning from the Trump administration, has rattled the U.S. unit. It fell 2.6% in January. This marked its biggest monthly drop since March, when it declined 3.6%.
Trump deserves a healthy share of credit for this shift. On Jan. 17, Trump expressed concern about the strength of the currency. He described it as “too strong.”
The action prompted Steve Barrow, currency and fixed-income analyst at Standard Bank in a Wednesday note to forecast that the roller-coaster ride for the buck would likely end with greenback significantly lower at the end of Trump’s tenure in the White House. Barrow predicts a 10% near-term rise for greenback. This would be followed by “a multiyear downtrend …”