ING Sees Dollar Respite After Tariffs Boost Inflation

The dollar is headed for a few months of gains after tariffs raise inflation and force the Federal Reserve to delay interest rate cuts, according to ING Bank NV strategist Chris Turner.

The greenback can find some respite from its spiral this year as trade levies will spark consumer-price growth acceleration from August onward, limiting the Fed’s rate cuts, Turner said in an interview. During this time, he expects the euro to briefly dip back into the $1.13-$1.15 range and the yen to weaken to 145-150 per US dollar. That would represent a drop of about 4% for both the euro and the yen.