Dollar Surges in Early Trade

26 Nov 2024 , 10:52 AM

Following President-elect Donald Trump’s announcement that he will issue an executive order imposing a 25% tariff on all goods entering the United States from Mexico and Canada, the U.S. dollar saw a broad increase against its main competitors on Tuesday.

The value of the dollar increased by more than 2% in relation to the Mexican peso and by 1% in relation to the Canadian dollar.

As U.S. Treasury markets applauded Trump’s selection of hedge fund manager Scott Bessent as U.S. Treasury secretary, the dollar has been weakening over the last several days.

Although Bessent has publicly backed a strong currency and supported tariffs, traders viewed him as a fiscal conservative and veteran of Wall Street.

At 107.37, the dollar index, which compares the value of the US dollar to six competitors, was last. Sterling was last down 0.4% at $1.2516, while the euro dropped 0.6% to $1.043175.

While U.S. factory surveys surprised on the positive side, European industrial surveys showed widespread weakness, which hurt the euro zone’s single currency on Friday.

Regarding China, the president-elect claimed that Beijing was not doing enough to restrict the export of chemicals used in drug production in order to limit the flow of illegal drugs from Mexico into the United States.

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