US dollar weakens amid reports of gradual tariff increases by Trump team
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Update time : 2025-01-15 21:11:16
The US dollar index fell by 0.13% yesterday (January 14), closing at 109.26, as reports emerged suggesting that Trump’s economic team is considering a phased approach to raising tariffs. This marks a reversal from the index’s previous session high of 110.17, its strongest level in over two years.
Trump’s advisors are exploring a slower, incremental strategy for tariff hikes rather than implementing steep increases all at once. Such a method could alleviate inflationary pressure while offering the Federal Reserve more flexibility for potential interest rate cuts.
As Trump prepares to return to the White House next week, analysts anticipate his tariff policies and other economic measures will stimulate growth but also heighten inflation. Simultaneously, tariff concerns and reduced expectations for Fed rate cuts are likely to boost U.S. Treasury yields, providing further support for the dollar in the longer term.
