Dollar exchange rate after Trump's inauguration: how the American currency will change
Posted: Mon Feb 17, 2025 5:45 am
On January 20, 2025, the official inauguration of the newly elected US President Donald Trump will take place. Few doubt that he will begin a new economic and financial policy in the country, which will certainly have an impact on the global economy.
What will happen to the dollar after Trump's inauguration and what exchange rate of the American currency against the Russian ruble can be expected in 2025, read in the RIA Novosti article.
Dollar Index Soars After US Elections
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About a month before the US presidential election, the dollar thailand mobile database began to strengthen against all world currencies, recalls Arthur Meinhard, head of the global markets analytics department at Fontvielle Investment Company. The DXY index (the index of the US dollar value against other currencies) moved away from the equilibrium level of 100, around which it was in September, and began to grow. On November 5, that is, on the day of the presidential election in the United States, it closed at 103.45, and the next day it tested the level of 105.44 and closed at 105.12. During November and December, it gradually grew, exceeding the level of 109 in January 2025. The US dollar index DXY has not been so high since the fall of 2022, the analyst emphasizes.
"Of course, one of the key reasons for this dynamic is first the anticipation of the presidential elections, then the election of Donald Trump and, finally, his inauguration. Why? The fact is that during the election campaign, he promised to start a real tariff war with a number of countries. This is one of the measures aimed at solving the problem of the US trade deficit, which is quite acute for the country," comments Meinhard.
The Dollar's Position in the Next Four Years: New Tariffs and Trade Wars
Photo - © Adobe Stock
The American economy is built primarily on the service segment, not on the production of goods, Meinhard explains. Even in those sectors where production is available (for example, the automobile industry), there is high competition with goods imported into the country. It is difficult for Americans to compete with the same Chinese, so foreign equipment, cars, and products have simply flooded the domestic US market. And in order to protect domestic producers and give them a competitive price advantage, the Donald Trump administration plans to raise tariffs on products imported into the country, the analyst explains.
What will happen to the dollar after Trump's inauguration and what exchange rate of the American currency against the Russian ruble can be expected in 2025, read in the RIA Novosti article.
Dollar Index Soars After US Elections
Photo - © Adobe Stock
About a month before the US presidential election, the dollar thailand mobile database began to strengthen against all world currencies, recalls Arthur Meinhard, head of the global markets analytics department at Fontvielle Investment Company. The DXY index (the index of the US dollar value against other currencies) moved away from the equilibrium level of 100, around which it was in September, and began to grow. On November 5, that is, on the day of the presidential election in the United States, it closed at 103.45, and the next day it tested the level of 105.44 and closed at 105.12. During November and December, it gradually grew, exceeding the level of 109 in January 2025. The US dollar index DXY has not been so high since the fall of 2022, the analyst emphasizes.
"Of course, one of the key reasons for this dynamic is first the anticipation of the presidential elections, then the election of Donald Trump and, finally, his inauguration. Why? The fact is that during the election campaign, he promised to start a real tariff war with a number of countries. This is one of the measures aimed at solving the problem of the US trade deficit, which is quite acute for the country," comments Meinhard.
The Dollar's Position in the Next Four Years: New Tariffs and Trade Wars
Photo - © Adobe Stock
The American economy is built primarily on the service segment, not on the production of goods, Meinhard explains. Even in those sectors where production is available (for example, the automobile industry), there is high competition with goods imported into the country. It is difficult for Americans to compete with the same Chinese, so foreign equipment, cars, and products have simply flooded the domestic US market. And in order to protect domestic producers and give them a competitive price advantage, the Donald Trump administration plans to raise tariffs on products imported into the country, the analyst explains.