Dollar set for 5th monthly drop on trade, fiscal uncertainty
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Trump, tariffs and Court of International Trade
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Global stocks rose while the U.S. dollar weakened after giving up earlier gains against major peers on Thursday as markets digested the surprise ruling of a trade court that blocked President Donald Trump's so-called "Liberation Day" tariffs.
If high tariffs and an appreciating yen mean the end of the carry trade, the greenback will be the canary in the coal mine for all US assets.
The on-again, off-again threat of tariffs and unpredictable behavior is placing the greenback at its greatest risk since the eve of the Great Depression, Jon Talton writes.
The U.S. dollar was boosted for a second day on Wednesday on optimism that trade deals will brighten the U.S. economic outlook, while the Japanese yen was weaker after the government saw soft demand for 40-year bonds.
The U.S. dollar fluctuated as tariff disputes and economic policy uncertainties stirred investor reactions. A court reinstated President Trump's tariffs, while concerns over economic slowdown and inflation pressures lingered.
Weak U.S. data and concerns over U.S. fiscal health persist, and could pressure the dollar, Kenanga IB said.
The pound ticked higher versus the dollar on Thursday, one of the few major currencies holding its ground against the greenback which earlier surged after a court blocked U.S. President Donald Trump from imposing import tariffs on other countries.
U.S. Treasury yields are climbing swiftly, with the 30-year yield rising back above 5% and the 10-year jumping to 4.50% after the U.S. Court of International Trade ruled President Donald Trump's key tariff measures illegal.
With the Trump administration increasingly focused on striking deals to help weaken the dollar, a team of analysts at Deutsche Bank crunched the numbers and determined just how much the greenback would need to weaken to eliminate the U.
2don MSN
Investors piled up bullish bets on Asian currencies, including the yuan, as easing U.S.-China tariff tensions, new trade deals and a growing unease with U.S. policies prompted them to pull out of dollar assets,