Trump Victory Could Strengthen US Dollar, Impacting Asian Markets: Barclays Report

A Barclays report predicts that a Trump win in the upcoming US elections could strengthen the US dollar, affecting emerging Asian markets. The report notes that India's central bank will likely prioritize domestic factors over currency fluctuations, focusing on internal economic conditions despite global pressures.

A recent report by Barclays suggests that a victory for Donald Trump in the upcoming U.S. presidential election could bolster the U.S. dollar. Historically, Trump's candidacies have been linked with a stronger dollar, as seen in 2019.

This potential increase in dollar strength could pose challenges for monetary policy in emerging Asian markets, despite not affecting all central banks uniformly. Specifically, India's Reserve Bank is expected to maintain a focus on domestic economic stability rather than external monetary pressures.

The report underscores that while a rising dollar may increase import costs for economies like India, the Reserve Bank of India is likely to prioritize domestic economic growth and stability, handling issues such as inflation and post-pandemic recovery as primary concerns.

(With inputs from agencies.)