The dollar began to fall sharply following media reports that Trump plans to impose only limited tariffs on imports.
The dollar fell sharply against most major currencies on Monday, January 6, on bets that US President-elect Donald Trump’s tariff plans will not go as well. Bloomberg writes about it.
The Bloomberg Dollar Spot Index fell 0.9%, the most since November, while the 10-year US Treasury yield fell after the Washington Post reported that Trump aides were exploring a tariff plan which covers only critical imports .
The euro rose more than 1% against the US currency, its biggest gain since August.
The dollar benefited from expectations that Trump would impose tariffs on key US trading partners, hurting currencies including the yuan and euro. But a tariff program that targets only key sectors such as the defense industry will have less impact on the global economy and pressures on US inflation.
A broad tariff program could harm global economic growth and lead to higher consumer prices.
Recall that Trump said he would impose a 25% tariff on goods from Canada and Mexico due to their failure to stop the flow of illegal migrants and drugs from these countries to the United States.
Source: korrespondent
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