Dollar Rises Amid Trump's Tariff Announcements

The US Dollar experienced a rebound after President Donald Trump announced potential 25% tariffs on Mexico and Canada, affecting financial markets and leading to a rise in the dollar index by 0.7%. This announcement followed his decision to hold off on immediate tariffs on China, creating volatility in currency markets. The Canadian dollar and Mexican peso depreciated by around 1% against the US dollar as investors sought safety in the greenback. Trump's tariff threats are part of a broader protectionist agenda aimed at leveraging America's economic power, causing uncertainty and market fluctuations. Financial analysts suggest that Trump's unpredictable policy approach could lead to continued volatility, as seen with base metals declining and the offshore yuan falling. Trump's comments have raised concerns over potential larger tariffs on China, adding to the economic uncertainty.