1409 GMT - The dollar will strengthen meaningfully in the short-run if President Trump imposes substantial universal tariffs, asset manager GMO says in a note. In this case the dollar could rise about 8% as U.S. demand for foreign goods is likely to fall. If countries impose retaliatory measures against the U.S., the dollar will still appreciate but by a smaller 4% as interest in U.S. exports would weaken, say GMO's Ben Inker and John Pease, who belong to GMO's asset allocation team. However, the dollar faces a longer term threat if investor interest in dollar-denominated assets declines. "If U.S. government actions decrease the attractiveness of U.S. assets to foreign and domestic investors, any short-run strengthening might well turn into substantial and harmful dollar weakening," they say. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

April 02, 2025 10:09 ET (14:09 GMT)

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