Dollar gains after Trump vows tariffs against Mexico and Canada
SINGAPORE, Nov 26 (Reuters) -The U.S. dollar rose broadly against major rivals on Tuesday after President-elect Donald Trump said he would sign an executive order imposing a 25% tariff on all products coming in to the United States from Mexico and Canada.
The dollar rose over 2% against the Mexican peso MXN= and 1% against its Canadian counterpart CAD=D3.
The dollar has been on the back foot in the past few days as U.S. Treasury markets cheered Trump's pick of hedge fund manager Scott Bessent for U.S. Treasury secretary.
"It's almost as if Trump wants to remind markets who is in control, after nominating Scott Bessent as Treasury Sec - a man markets expected to cool Trump's potency," said Matt Simpson, senior market analyst at City Index.
"But with the Canadian dollar rising against the Mexican Peso, markets are assuming this will hit Mexico the hardest."
While traders saw Bessent as an old Wall Street hand and fiscal conservative, he has also openly favoured a strong dollar and supported tariffs.
The dollar index =USD, which measures the U.S. currency against six rivals, was last at 107.37. The euro EUR=EBS fell 0.6% to $1.043175, while sterling was last down 0.4% at $1.2516.
The euro zone's single currency had taken a hit on Friday as European manufacturing surveys showed broad weakness, while U.S. surveys surprised on the high side.
On China, the president-elect said Beijing was not taking strong enough action to stop the flow of illicit drugs crossing the border into the U.S. from Mexico by curbing the export of drugmaking ingredients.
"Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America," Trump said in a social media post.
China has previously denied the allegations.
The Australian dollar AUD=D3 fell 0.75% to $0.64555, while the New Zealand dollar NZD=D3 touched a one-year low and was last at $0.58075.
Turning to cryptocurrencies, bitcoin BTC= was trading at $93,577, well below the record high of $99,830 it touched over the weekend.
Bitcoin met profit-taking ahead of the symbolic $100,000 barrier, having climbed more than 40% since the U.S. election earlier this month on expectations Trump will loosen the regulatory environment for cryptocurrencies.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Ankur Banerjee in Singapore; Editing by Christopher Cushing
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
