Dollar rises sharply after Trump’s decision to increase tariffs on imports to US
Date
11/26/2024 2:22:10 AM
(MENAFN) The dollar rose sharply against other major currencies on Tuesday following a statement from U.S. President-elect Donald Trump, who announced that he would sign an executive order imposing 25 percent tariffs on all imports into the United States from Mexico and Canada. This development led to a significant increase in the value of the dollar, which gained more than two percent against the Mexican peso and one percent against the Canadian dollar.
In recent days, the U.S. dollar had seen some decline as the Treasury market responded positively to Trump's appointment of Scott Bessent, a hedge fund manager, to take over the Treasury portfolio. Despite this recent weakness, the dollar’s broad-based gains on Tuesday reflected growing investor confidence in the U.S. economy, bolstered by the announcement of the tariff measures.
The dollar index, which tracks the performance of the U.S. currency against six major currencies, rose to a reading of 107.37. Meanwhile, the euro fell 0.6 percent to USD1.043175, and the British pound dropped 0.4 percent to USD1.2516. These movements suggest a shift in market sentiment following Trump’s tariff announcement.
In a separate development, Trump accused China of failing to take sufficient action to stop the flow of illegal drugs into Mexico, which then cross into the U.S. He stated that China should curb the export of drug-making ingredients, warning that the U.S. would impose additional tariffs of 10 percent on Chinese goods if the issue was not addressed. China has previously denied these accusations.
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