Trump’s Tariff Hike Announcement Sends USD Lower
Arslan Butt • 1 min read
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.