UBS: Trump may not be able to deliver on policies to boost the dollar

UBS Global Wealth Management said the dollar's recent strength may not last after Trump won the U.S. presidential election. Analysts said in a report that the dollar is likely to weaken in the medium and long term. "The policies proposed by Trump are expected to expand the twin deficits and weaken the long-term appeal of the dollar." They said Trump may not be able to deliver on policies to boost the dollar, and he may seek lower yields and a weaker currency. At the same time, they said the market has gone too far in reducing expectations for Fed rate cuts, and the "overshoot" of U.S. Treasury yields may slide with the dollar. UBS expects the euro to rise to 1.12 against the dollar by December 2025 from the current 1.0573. (Jinshi)