The US dollar has fallen to a one-week low against major currencies, as traders weigh the likelihood of President-elect Donald Trump’s promised tariffs. However, after Trump denied a report suggesting that his administration was considering less aggressive tariffs, the currency regained some ground.
A report by the Washington Post stated that Trump’s aides were exploring plans for tariffs only on sectors seen as critical to US national and economic security. This sparked concerns about the impact of such tariffs on global trade. However, Trump quickly denied the report, stating that his proposed 10-20% universal tariffs were unlikely to occur in their current form.
The dollar index, which tracks the currency against the euro, sterling, and four other rivals, rose to 108.38 after dropping as low as 107.74 overnight. This is its weakest level since December 30. The dollar also gained 0.3% to reach 158.23 yen, a high not seen since July 17.
The euro was down slightly at $1.03795, following a one-week high of $1.0437 on Monday. Sterling was also weaker at $1.125085, after climbing as high as $1.2550 in the prior session.
Traders are closely watching the situation, with some analysts expressing skepticism about Trump’s tariffs. “The price tells traders all they need to know: The markets believe the economy will be better off without Trudeau,” said Kyle Rodda, senior financial market analyst at Capital.com.
In cryptocurrencies, bitcoin rose 0.9% to $102,560, its highest level since December 19.
Source: https://www.reuters.com/markets/currencies/dollar-trades-near-one-week-low-market-ponders-trump-tariffs-2025-01-07