Investing.com – The US dollar fell on Monday after a report indicated that President-elect Donald Trump would delay imposing trade tariffs immediately after his inauguration, an expectation that had boosted the US currency after his election victory in November.
At 09:20 ET (14:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was trading 1.1% lower at 108.020, after hitting a more than two-year high last week. have increased.
The Wall Street Journal reported Monday that Trump plans to issue a broad memorandum on his inauguration, directing federal agencies to study trade policy and evaluate U.S. trade relations with China and America’s continental neighbors — but on his first day does not impose any new tariffs during his term of office. office.
The memo, seen by WSJ, suggests there are still ongoing debates within the new administration about how to deliver on Trump’s campaign promises for high tariffs on imports from trade rivals like China.
The dollar has risen about 4% since the November presidential election as traders expected Trump’s policies to be inflationary, necessitating higher interest rates for an extended period.
“Financial markets are on edge to see what executive orders newly elected US President Donald Trump will issue on his first day in office,” ING analysts said in a note.
“FX markets are most interested in what he has to say about tariffs and what kind of pain the Oval Office plans to inflict on major trading partners.”
