George Magnus, Columnist

Trump's Trade Policies Only Make the Dollar Stronger

Expect another leg up for the greenback of 10 percent to 15 percent.

February 9, 2017 at 4:45 PM UTC

George Magnus is a research associate at Oxford University’s China Centre, and the author of "Red Flags: Why Xi’s China is in Jeopardy."

Dollar getting stronger.
Photographer: Matt Cardy

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Donald Trump is off to a controversial start as U.S. president, but for the most part financial markets have been fairly relaxed about American and global economic prospects despite the lack of any precise contours for the new administration's fiscal strategy.

In fact, the markets have barely discounted the risks of trade and currency conflicts. What they should prepare for is a significantly stronger U.S. dollar, and greater weakness in U.S. bonds, commodities and emerging markets. The implications for equities are more nuanced.