kaidi2022
1 hour ago
Dollar Rises. The Currency's in Demand After Trump Tariff Moves.
The dollar was rising after U.S. President Donald Trump imposed tariffs on Canada, China and Mexico over the weekend and threatened a similar move on the EU.
Tariffs will inevitably boost inflation and potentially prevent the Federal Reserve from cutting interest rates further and could lead to rate rises instead, Swissquote Bank analyst Ipek Ozkardeskaya said in a note.
A shift in Fed rate expectations and flight to safety explain why the dollar is in demand, she said. However, tariffs will also weigh on the U.S. growth expectations and this "should limit the dollar's upside potential."
