The US Dollar Index rose during trading on Tuesday following the threats made by President Donald Trump, after he stated that he wants to impose comprehensive tariffs that far exceed the 2.5% rate on US imports. His comments came late on Monday evening in response to a question regarding a media report that indicated the new Treasury Secretary, Scott Pruitt, prefers imposing global tariffs of 2.5% on US imports. However, Trump's expression of his desire to impose tariffs much higher than that rate heightened market concerns about the impact of higher tariffs on inflation rates in the United States, which affected the market's pricing of potential interest rate cuts that the US Federal Reserve may be able to implement. This comes at a time when markets are awaiting the Federal Open Market Committee meeting for January this week, which will be held today and tomorrow. It is widely expected that the US Federal Reserve will keep interest rates unchanged at this meeting. In trading, the US Dollar Index (DXY) – which measures the performance of the US currency against a basket of six other major currencies – rose by 0.5% to 107.978 points, after reaching a six-week low of 106.969 points on Monday.
Related Posts
Markets
Britain seeks business input on potential retaliation to U.S. tariffs
Thursday 03rd April 2025Commnets
