This podcast discusses the impact of tariffs on foreign exchange markets. James Lord, Morgan Stanley's Head of Foreign Exchange and Emerging Market Strategy, analyzes two types of tariffs—those intended for negotiation and those with broader economic goals—and their varying effects on currency volatility. He highlights April 1st as a potentially significant date for market shifts and notes that while uncertainty around trade policy has increased, FX volatility remains relatively muted compared to past highs. Lord suggests investors consider the long-term implications of tariffs, particularly those imposed on Chinese imports, predicting a dollar-renminbi exchange rate of 7.6 by the second half of 2025. The podcast concludes with a call to action for listeners to leave reviews and share the podcast.
