He global dollar remained stable on Tuesday after plummeting after the first day back from donald trumpto the presidency of USA, which he assumed with contradictory messages about the duty and highlighted investors’ sensitivity to trade policy headlines.
He dollar index —which measures the performance of the greenback in relation to a basket of six other currencies of international relevance—operated unchanged and remained at 107.95. It had previously risen to 108.79, although it failed to recover the 1.2% it lost on Monday in its biggest daily drop since November 2023. Meanwhile, the euro rose 0.14% to $1.04295, after rising 1.42% a day earlier.
“The first hours of the administration trump have stressed that the political environment will once again be dynamic and markets should prepare for the volatility”, told Reuters Charu Chanana, chief investment strategist Sax. “Clearly, markets celebrated too soon, as tariff threats did not appear at the beginning of Trump’s inaugural address,” he added.
Still, the announcement that, starting February 1, the Republican could implement tariffs on Canada and Mexico of around 25% defied suggestions that his trade policy could be more gradual. He also floated the idea of universal tariffs, but said the United States was not ready for that yet.
He dollar has risen about 5% since trump won the Nov. 5 election, partly because the U.S. economy has remained strong and partly because investors have braced for wide-ranging tariffs that would likely hurt America’s trading partners. Many investors were expecting early action on this issue, hence the big movements sparked by the memorandum of the Wall Street Journal indicating that there will be no immediate actions.
The returns of the United States Treasury bonds fell 4 basis points on Tuesday to 4.57%, after reopening for operations after a public holiday; although they have gained almost a percentage point since the Federal Reserve (Fed) reduced rates by 50 basis points in September, reflecting an economy that has continued to grow strongly.
“At some point, we’re pretty sure that trump will begin to move forward with tariff measures,” he said Khoon Goh, head of research Asia in ANZ, on tariffs in general. “Just because I haven’t addressed this on day one doesn’t mean it’s off the agenda. It’s definitely firmly on the agenda, we just have to wait and see what shape it takes,” he added.
With no mention of Trump, Bitcoin relaxes
He Bitcoin, Meanwhile, it rose in a volatile session after moving away from its new record on Monday amid investor disappointment over the failure to reveal pro-cryptocurrency policies on Trump’s first day in office.
The oldest cryptocurrency The world’s highest price hit an all-time high of $109,071 on Monday when Trump was sworn in as the 47th president of the United States, but then began to fall. Finally, it gained 2.40% to $105,009.35 in US trading hours.
Both, Ethereum, The second largest cryptocurrency rose 0.84% to $3,308.53, as the market began to shake off some of that disappointment. However, some analysts warned that it is expected volatility until the Trump administration begins to announce concrete policies that the cryptocurrency industry has been waiting for for a long time.
“The digital asset market is disappointed that it was not mentioned in the inaugural address or in the executive orders on the first day,” he said. Geoffrey Kendrick global director of digital asset research at Standard Chartered.
“I suspect that bitcoin will end up going down as long as we don’t hear from Trump on digital assets. A drop below $100,000 seems inevitable,” he said.
The Republican’s cryptocurrency, launched late Friday, was trading at $37.98, according to cryptocurrency price tracker CoinMarketCap, having roughly halved from its peak of around $75 on Monday, when its value market exceeded 14 billion dollars. The coin was priced around $6.50 at its release.
The inaugural speech of trump Monday was accompanied by a series of executive orders and plans related to trade tariffs, immigration, energy deregulation and even a reprieve for the popular Chinese short video app TikTok. But he didn’t mention cryptocurrencies. “He digital asset market “is disappointed that it was not mentioned in the inaugural address or in the executive orders on the first day,” he told Reuters. Geoffrey Kendrick global head of digital asset research at Standard Chartered. “I suspect that bitcoin will end up going down as long as we don’t hear from Trump on digital assets. A drop below $100,000 seems inevitable,” he added.
Cryptocurrency investors had been waiting for months for the president, a supporter of cryptocurrencies, to initiate a radical change in US policies towards this volatile asset class. The enthusiasm helped the Bitcoin exceeded $100,000 for the first time in December of last year. Now, the analysis is that the flexibility measures will arrive gradually and that, in the meantime, there will be greater volatility and, probably, a liquidation.
However, Trump has already implemented personnel changes that the industry finds encouraging, choosing Mark Uyeda, a Republican member of the United States Securities and Exchange Commissionto be interim president of the SEC; and plans to nominate former SEC commissioner Paul Atkins to direct the regulator permanently.
Atkins is widely expected to end a crackdown on cryptocurrencies led by the former president’s Democratic SEC chairman. Joe Biden, Gary Gensler, and Uyeda has criticized the body for not offering guidance. Top Republican officials are set to begin reviewing their cryptocurrency policies possibly as early as next week, three people briefed on the matter said.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
