Analyst: The tariff debate has had a serious impact on the US dollar.

On June 12, Felix Brill, chief investment officer of VP Bank, said that the tariff debate had a serious impact on the dollar. Investors are turning to European investments, which is good for the euro. After a sharp drop in the US dollar, technical analysis points to a consolidation of the US dollar. Given the high trade deficit in the United States, the trade-weighted dollar is grossly overvalued and prone to further depreciation. This deficit is closely linked to record levels of external debt. The higher the external debt, the more difficult it is to obtain additional funds. "Correcting this imbalance requires more attractive U.S. asset prices, which are largely achieved through the depreciation of the dollar," Brill said.
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