Dollar declines amid tensions over Trump’s tariff plans
Date
1/22/2025 1:37:50 AM
(MENAFN) The dollar edged lower on Wednesday in volatile trading as uncertainty over President Donald Trump's tariff plans kept financial markets uneasy. Trump mentioned late Tuesday at the White House that his administration was considering imposing a 10 percent tariff on goods imported from China starting February 1, the same date he had previously indicated for tariffs of around 25 percent on imports from Mexico and Canada.
He also reiterated plans to impose tariffs on European imports but did not provide any additional details. Despite these threats, the absence of concrete plans on tariffs during Trump’s first day in office led to a 1.2 percent decline in the dollar against a basket of major currencies on Monday.
The US currency steadied on Tuesday, finishing the day unchanged after officials reassured that any new tariffs would be implemented gradually. This statement helped ease market concerns, preventing further volatility in the dollar’s performance.
By early Wednesday, the dollar index, which measures the currency against the euro, yen, and four other major currencies, was down 0.14 percent at 108 as of 0054 GMT. Meanwhile, the euro slipped 0.07 percent to USD1.0420, while the yen strengthened slightly, reaching 155.40 against the dollar.
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