The Dollar Is Falling Against The Euro And The Pound After Trump Restricts His Customs Powers.
Money and Business Economy News - Follow-up The dollar fell on Monday as traders saw the U.S. Supreme Court's decision to overturn tariffs imposed by President Donald Trump as supportive of global growth, but remained cautious due to the continuing risk of repercussions from the Iranian issue.
The euro rose 0.4% to $1.1820 and sterling gained 0.3% to $1.3516 in Asian trading, which was relatively quiet due to a holiday in Japan and Lunar New Year celebrations in China. The dollar fell 0.4% to 154.40 yen.
The Supreme Court ruled on Friday that Trump's sweeping tariffs exceeded his authority. Trump responded by strongly criticizing the court and imposing a 15% tariff on all imports, insisting on maintaining high tariff agreements with trading partners, according to Reuters.
Sim Moh Siong, a currency strategist at OCBC Bank in Singapore, said: "This weakens the dollar because it could benefit economic growth in regions outside the United States."
He added that the long-term implications for the exchange rates of other currencies are less clear, as the decline in US revenues is likely to have a negative impact on the financial situation and the dollar, while oversight of Trump’s power may be a positive thing, by limiting one of the sources of policy volatility.
The New Zealand dollar rose slightly, but the Australian dollar fell a little to $0.7070.
The Swiss franc, a safe-haven currency, rose significantly by 0.5% to 0.7727 per dollar.
In addition to the implications of the tariff issue, markets are focusing on the US military buildup in the Middle East and the pressure on Iran regarding the nuclear issue, and are awaiting Trump's State of the Union address on Tuesday. https://economy-news.net/content.php?id=65971