Analysis: The dollar is expected to take a break after tariffs push up inflation

Chris Turner, strategist at ING Bank, said the dollar was set for several months of gains after tariffs pushed up inflation and forced the Federal Reserve to delay interest rate cuts. Mr. Turner said the dollar could find some support after its downward spiral this year, as trade tariffs will spur an acceleration in consumer prices from August and constrain the Fed's rate cuts. In the meantime, he expects the euro to briefly fall back to the 1.13-1-dollar range and the yen to fall to 145-150 against the dollar. That would mean both the euro and the yen would fall about 4 per cent. "We think the Fed is likely to keep rates on hold until December," Mr. Turner said. "At that point, the dollar may see a small correction."