The trend of the strong dollar reversed at the beginning of the year, with china potentially imposing retaliatory tariffs - Allianz GI

November 27, 2024 6:15 JST (excerpt)
Insufficient preparation for the scenario of the US economy being hit by retaliatory tariffs - Mr. Hilt advises.
There is a good possibility that the dollar will start moving in the opposite direction in the first quarter of next year.
Allianz Global Investors (GI) expects the dollar's rise to reverse early next year, as there is a high probability that China will take countermeasures against tariff measures by the upcoming Trump administration.
Gregor Hilt, Chief Investment Officer (CIO) of the company, pointed out that market participants are not prepared for the potential impact of retaliatory tariffs on the US economy and the potential to suppress a further rise in the dollar. He stated that once Mr. Trump takes office as President in January next year, this risk will become a reality immediately.
He noted that there is a good possibility that the dollar will start moving in the opposite direction in the first quarter of next year, January to March.