Dollar Surges as Trump Threatens Tariffs on Mexico and Canada
Amidst market volatility, the U.S. dollar has strengthened against major currencies following President Donald Trump's announcement of potential 25% tariffs on Mexico and Canada.
Key Points:
* Bloomberg's dollar index rebounded from a 14-month low, rising as much as 0.7%.
* The Canadian dollar and Mexican peso depreciated by over 1% against the greenback.
* Analysts anticipate further tariff announcements on China, potentially buoying the dollar even higher.
Market Reactions:
* The dollar's surge reflects increased uncertainty surrounding tariffs and their global economic impact.
* Prior to Trump's announcement, reports indicated he would delay tariffs after his inauguration, causing market fluctuations.
* The 10-year Treasury yield declined six basis points to 4.56%, while the offshore yuan fell 0.2%.