Trump’s Tariff Hike Announcement Sends USD Lower

The US dollar’s bullish run came to an abrupt halt after Trump’s latest announcement for additional tariffs on Chinese imports, possibly threatening whatever trade deal the two countries were set to finalize.

At the time of writing, the US dollar index DXY was trading at 97.44, down 0.12%. The Japanese Yen was the biggest gainer as the market sentiment soured, hiking demand for this safe haven asset. USD/JPY was trading at around 110.61, significantly down from the key level at 111.70.

The Chinese Yuan too slipped by nearly 1% on the back of these latest round of tariffs. On Tuesday, the office of US Trade Representative Robert Lighthizer is likely to issue a notice confirming the increase in tariffs on $200 billion worth of Chinese goods from 10% to 25%.

According to Trump’s tweet, this new round of tariffs is expected to come into effect starting this Friday.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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