Investing.com — Currencies of countries that make up the BRICS bloc weakened on Monday, while the dollar strengthened after newly-elected US President Donald Trump threatened to impose steep tariffs on the bloc over its efforts to turn away of the dollar.
The , and all weakened between 0.1% and 0.5% in Asian trading, while trading in other currencies was still closed over the weekend.
It shot up 0.5%.
Trump said on Sunday he will impose “100% tariffs” on imports from the BRICS bloc, effectively blocking them from US trade if they go ahead with plans to adopt their own currency and move away from the dollar .
Trump said he would seek commitments from the bloc on the dollar and that it will not create a new currency to rival the greenback.
The BRICS bloc consists of Brazil, Russia, India, China, South Africa, Egypt, Iran, Ethiopia and the United Arab Emirates. It has consistently called for a new global reserve currency and recently outlined plans for a common currency for trade between member states.
Trump’s recent tariff threat comes after he threatened to impose additional tariffs on China over the alleged flow of illegal drugs into the US. The president-elect has also pledged to impose a blanket 10% tariff on all U.S. imports and has signaled a largely protectionist stance on trade and immigration.
Markets fear Trump’s tariffs will trigger retaliatory measures, sparking a new trade war between the world’s largest economies.
