Washington:The US dollar remains robust, posing challenges for President Donald Trump as he navigates rising energy costs and Middle East tensions ahead of the November 3 midterm elections. The strong dollar, contrary to the administration's preferences, complicates the economic landscape for American households already burdened with higher spending and borrowing costs.

According to Anadolu Agency – English, the dollar's appreciation, reaching its highest since April 2025 at 102.9, is attributed to Middle East conflicts threatening energy supplies. This surge has led to inflationary pressures, stabilizing the dollar slightly above 101.5.

The rising dollar index, which measures its strength against multiple currencies, has surged 3.3% since last year. Analyst Zafer Ergezen notes that this trend weakens US products' competitiveness. Despite Trump's calls for lower interest rates, economic conditions have not supported such cuts.

Trump's economic strategy involves dollar depreciation and increased liquidity to mitigate the federal government's current account deficit. His administration has also criticized rising imports, particularly from China, amid growing inflation and interest rates.

Ergezen suggests that the post-election period may see significant developments in the US/Israel-Iran conflict, potentially influencing Trump's policy direction. Whether Trump adopts an aggressive stance or shifts policies will depend on the election outcomes and subsequent geopolitical developments.