The dollar rose on Tuesday after US President Donald Trump said he would impose tariffs on products coming to the United States from Mexico, Canada and China, with investors bracing for policies that could lead to war. continue trading.
In an initial response to Trump’s statements, the dollar jumped more than two percent against the Mexican peso, and recorded its highest level in four and a half years against the Canadian dollar.
The US currency also rose to its highest level since July 30 against the Chinese Yuan. Other currencies also fell against the dollar, but pared losses in afternoon trading in Asia.
The dollar has been on the defensive over the past two days as the Treasury market has welcomed the president-elect’s selection of hedge fund manager Scott Besent to take over the Treasury portfolio. over.
While traders see Besant as a veteran Wall Street expert with conservative financial leanings, he expressed his support for the strength of the dollar and his support for imposing customs duties. Analysts said the market reaction to Besant’s election was likely to be short-lived.
Trump said, on the first day of his new term, that he will impose customs duties of 25 percent on all products coming from Mexico and Canada.
Regarding China, the president-elect said that Beijing has not taken measures strong enough to limit the export of components used in illegal drugs.
“Until they stop this, we will impose an additional 10 percent tax on China, plus any additional tariffs, on many products that come into the United States,” Trump said.
China had previously denied these allegations. The Chinese embassy in Washington said after Trump’s appointments that any trade war would not benefit either the United States or China.
The dollar index, which measures the US currency’s performance against six major currencies, hit 107.04 in the latest reading. The euro fell 0.18 percent to $1.04785, and the British pound fell 0.14 percent to $1.25525.
The Australian dollar fell to its lowest level in more than three months at $0.64335 in the first hours of trading in Asia, and in the latest trade it fell 0.21 percent to $0.6478. The Australian dollar is often traded in exchange for the yuan as Australia’s largest trading partner is China.
The New Zealand dollar touched its lowest level in a year at 0.5797, but recovered most of the losses, settling in the latest transactions at 0.58415 US dollars.
As for cryptocurrencies, Bitcoin was trading at $94,375, which is much lower than the high of $99,830 it recorded at the beginning of the week.
Bitcoin saw profit-making activity before reaching the symbolic $100,000 barrier, after rising more than 40 percent since the US elections held earlier this month amid expectations that Trump will ease regulatory measures for cryptocurrencies.
2024-11-26 08:10:00
#dollar #rose #highest #level #July
**To what extent do the perspectives of Dr. Vance and Mr. Chen align or diverge regarding the potential long-term effects of President Trump’s tariffs on the global economy?**
## World Today News:analyzing Trump’s Tariff Impact
**Introduction:**
Welcome to World Today News. Today, we delve into the immediate impact of President Trump’s newly announced tariffs on the global economy. We are joined by two distinguished guests:
* **Dr. Eleanor Vance**, an international trade economist and Professor at Columbia University.
* **Mr. David Chen**, CEO of a multinational manufacturing company with factories in both the US and China.
**Theme 1: The Dollar’s Surge**:
* **Host:** Dr. Vance, the article details a significant rise in the value of the US dollar following President Trump’s tariff announcements. What economic factors contribute to this surge, and what implications could it have for American consumers and businesses?
* **Dr. Vance:** Yes, the dollar’s rise reflects a flight to safety as investors anticipate potential trade disruptions. While a stronger dollar can benefit American consumers by making imports cheaper, it can also hurt American exporters who face higher prices for their goods abroad.
* **Host:** Mr. Chen, from your perspective as a business leader operating on a global scale, how might this dollar appreciation impact your companies’ operations and profitability?
* **Mr. Chen:** The stronger dollar certainly makes it more challenging to compete internationally. Our Chinese factories become less competitive as their exports become more expensive.
**Theme 2: Tariffs and Trade Relations:**
* **Host:** Dr. Vance, the article mentions President Trump’s proposed tariffs on goods from Mexico, Canada, and China. What are the immediate and potential long-term effects of these tariffs on these key trading partners?
* **Dr. Vance:** These tariffs could trigger retaliatory measures from Mexico, Canada, and China, leading to a trade war with negative repercussions for all involved. In the long run, they could disrupt global supply chains, hurt economic growth, and raise prices for consumers.
* **Host:** Mr. Chen, how do these potential trade disruptions impact your supply chains and manufacturing processes?
* **Mr. Chen:** We’re already seeing disruptions and increased costs due to uncertainty. Sourcing materials and components becomes more difficult, and transportation costs rise as well. We’re exploring alternative supply chains but this takes time and resources.
**Theme 3: The Role of Cryptocurrencies**
* **Host:** The article briefly mentions the declining value of Cryptocurrencies like Bitcoin. How do you see Congressional and global economic uncertainty influencing the cryptocurrency market in the coming months?
* **Dr. Vance:** This shifting political landscape and the uncertainties surrounding trade policies could lead to increased volatility in the cryptocurrency market. We’ll likely see investors seeking stable havens during periods of uncertainty, and cryptocurrencies may experience fluctuations accordingly.
* **Host:** Mr. Chen, from your perspective, do you see any opportunity or risk in exploring alternative financial instruments like cryptocurrencies given the current global economic climate?
* **Mr. Chen:** While cryptocurrencies are intriguing, we need to carefully assess their volatility and regulatory landscape before considering them as part of our financial strategy.
**Conclusion**:
* **Host:** Thank you both for your valuable insights. The economic ramifications of President Trump’s trade policies are complex and far-reaching. It remains to be seen how these actions will ultimately reshape the global trade landscape in the months to come.
