TD Securities: Stagflation Is the Latest Risk Facing the US Dollar

According to a report by Jinse Finance, foreign exchange strategists at TD Securities have indicated that the possibility of the United States falling into stagflation has become the latest risk to the strength of the US dollar. Additionally, against the backdrop of political interference in federal institutions, the dollar is gradually slipping into the status of an "emerging market currency." "Although the market seems to be ignoring inflation and instead focusing on slowing economic growth, this may be a mistake," wrote Jayati Bharadwaj, Linda Cheng, and Alex Loo of TD Securities in a report on Monday. "The latest US CPI report showed, for the first time, signs of tariffs being passed on to consumers. Despite the downside surprise, the market still interpreted it in a hawkish manner."