Dollar Weakens, Markets Nervous About Tariffs
The US dollar weakened in early Asian trading as tariff uncertainty loomed over markets. This occurred after the US Supreme Court struck down President Donald Trump's "reciprocal" tariff scheme, but Trump responded with a new global tariff plan that raised tariffs to 15%.
Risk sentiment was also shaky: S&P 500 futures opened lower, while Australian stocks erased early gains. The US dollar fell against the yen and the Australian dollar. Meanwhile, the New Zealand dollar strengthened after fourth-quarter retail sales data beat estimates. Bitcoin remained in bearish territory at the end of the week, while gold and silver rose.
Pressure also stemmed from global trade dynamics. Europe signaled it would propose halting the ratification process with the US, while India postponed talks to finalize an interim trade agreement. Market participants considered the uncertainty over Trump's next move more impactful than the potential "fresh air" of previously canceled tariffs.
In the bond market, the yield on the 10-year US Treasury bond rose to around 4.08% in a volatile last session, influenced by a mix of growth and inflation data and concerns about the fiscal implications of the tariff drama. Meanwhile, in commodity markets, oil prices fell slightly ahead of the resumption of US-Iran talks in Geneva, raising hopes for a diplomatic solution to tensions over Tehran's nuclear program. (asd)
Source: Newsmaker.id
