Mitsubishi UFJ: Supreme Court Ruling on Tariffs Negative for US Dollar

Derek Halpenny of Mitsubishi UFJ Financial Group stated in a report that the Supreme Court's decision to overturn most of President Trump's tariffs is unfavorable for the US dollar, as it creates policy uncertainty. He said that with the setback in tariff measures, the Trump administration could also push for a weaker dollar to boost exports. He said, "Furthermore, the weakening of tariffs and the overall average effective tariff rate are likely to mean a greater downward trend in inflation." He mentioned that this could increase the likelihood of the Federal Reserve cutting interest rates three times this year. Data from the London Stock Exchange Group shows that the market expects two rate cuts. The DXY dollar index fell by 0.1% to 97.668.