What Trump tariffs, deportations may mean for dollar-yen

Optimistic strong-dollar scenario appears to have peaked, analyst says

20241121N Dollar Yen

After Trump's first presidential win in 2016, currency traders changed their views on his impact on the dollar.  © Reuters

GENKI IKUTA, Nikkei staff writer

TOKYO -- President-elect Donald Trump's return to the White House may have seemed like a clear-cut win for dollar bulls, but this stance is being tempered by views of how his next administration's policies could pull the dollar-yen relationship in a different direction.

Expectations of tax cuts are a big part of the scenario for a stronger dollar. The yen initially weakened after the Nov. 5 U.S. presidential election, but the pace of its decline has slowed.

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