Some analysts believe that a Trump presidency could send the dollar tumbling, but many bankers disagree. They are confident that the eccentric billionaire could boost the national currency. This scenario is quite plausible.

According to Wall Street strategists, a victory for the Republican candidate could lead to a significant rise in the value of the US dollar. However, these conclusions are somewhat contradictory, as US presidential candidate Donald Trump has previously stated that a strong dollar creates problems. Therefore, he would not mind seeing the national currency weaken.

Currency strategists at Deutsche Bank argue that it would be difficult for Trump to artificially devalue the greenback, as it would require "trillions of dollars" in interventions or policies aimed at stimulating a massive outflow of capital from the United States. Analysts at Morgan Stanley partially agree, claiming that the Republican's proposed policies would lead to a rally in the national currency, while Barclays has recommended taking advantage of the recent dollar weakness to reopen long positions.

These calls from strategists follow Trump's comments on how the dollar's strength hurts America’s competitiveness. During his first term as president, the billionaire maintained this stance. However, things may be about to change. The Republican's recent remarks have weighed on the greenback, which has dipped by 1.6% after hitting an eight-month high in late June.

Deutsche Bank highlights Trump's policy of proposing tariff increases. The analysts believe that a broad implementation of tariffs and their serious implications are negative for the dollar. However, they will become a dominant market factor rather than policies aimed at weakening the greenback, the bank estimates.

"Even on its own, the tariff risk is enough to argue for a dollar rally," currency strategists at Barclays said. "Even if fully retaliated, tariffs of the magnitude discussed by the Trump team would likely boost the dollar by up to 4% against currencies like the Chinese yuan," they added.

According to James Lord, a currency strategist at Morgan Stanley, the debate over the greenback's prospects has intensified following Trump's recent comments on the weakness of the national currency. The expert is confident that the introduction of tariffs will lead to a stronger dollar, especially if retaliatory measures from trading partners heighten risks to the global economy.

At the same time, analysts do not rule out that the Republican could try to weaken the dollar by curbing the Federal Reserve's independence. However, the government's system of checks and balances will hardly let that happen. Moreover, the unique status of the American currency guarantees its strength and resilience.