Dollar Gains Against Peers on US Tariff Concerns
The dollar climbed against every Group-of-10 currency after President Donald Trump discussed some details of his tariff plans and incoming Treasury Secretary Scott Bessent reportedly pushed for gradual universal levies.
The Bloomberg Dollar Spot Index rose 0.3% after touching the lowest level since mid-December on Monday. Fast money reloaded USD/JPY longs in response to the US Senate confirming Bessent as the next Treasury secretary, according to an Asia-based FX trader.
“The US dollar bounce appears to be driven by tariff fears again,” said Sean Callow, senior analyst at Intouch Capital Markets. “The supposed trade moderate Scott Bessent is reportedly pushing for universal tariffs, while President Trump has spoken at length about the benefits of tariffs, giving every indication that tariffs will be an important policy tool”
Treasury 10-year yield rises about 1bp to 4.55% amid concern higher US tariffs would propel inflation higher
Trump said he would soon impose tariffs on foreign pharmaceuticals, semiconductors and metals
Bessent is backing universal tariffs on US imports starting at 2.5%, the Financial Times reports
EUR/USD dropped 0.5% to 1.0439
AUD/USD fell 0.5% to 0.6263
USD/JPY rose 0.2% to 154.84
GBP/USD declined 0.4% to 1.2455
Source : Bloomberg