He global dollar rose on Tuesday after the president-elect of USA, donald trumpconfirmed that he will impose duty to products from China, Mexico and Canada to reach their country, while investors prepared for policies that could lay the groundwork for trade confrontations.
In a first instinctive reaction to Trump’s comments, the dollar shot up more than 2% compared to the mexican peso and hit a four-and-a-half-year high against its Canadian counterpart, Reuters reported. The US currency also hit its highest level since July 30 against the Chinese yuan.
The dollar rose 0.83% to C$1.4102, after reaching its highest level since mid-2020 at C$1.4178. Against the Mexican peso, it gained 1.3%, at 20.54 pesos per dollar.
Other currencies fell against the dollar, but moves had moderated in early trading in Europe.
In recent days, the global dollar has been slowed by Trump’s decision to appoint hedge fund manager Scott Bessent as Secretary of the Treasury, which has caused a rise in prices state bonds and a drop in yields, with the consequent drag on the US currency.
However, the president-elect of the United States stopped that momentum when he said that on his first day in office he would impose a 25% tariff on all products from Mexico and Canada.
Regarding China, Trump assured that Beijing was not taking strong enough measures to curb the export of ingredients used in illicit drugsproposing an “additional 10% tariff, on top of any tariffs on its many products arriving in the United States.”
Currencies bounced as markets digested Trump’s comments, with the dollar index rising to 106.86 points, after touching 107.55.
He euro fell about 0.3%, but then rose 0.2% to $1.0515, while the pound sterling It barely changed at $1.2569. He yen It rose 0.1%, to 154.03 units per dollar.
He bitcoin It was trading at $93,651, well below the all-time high of $99,830 it reached last week. The cryptocurrency encountered profit-taking before the symbolic barrier of $100,000, after having risen more than 40% since Trump’s victory.
Source: Ambito
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