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Dollar Gains On Tariff Concerns
Tuesday, 21 January 2025 09:33 WIB | US DOLLAR |DOLLAR

The dollar index rose to around 108.5 on Tuesday (21/1), recovering some of the previous session's losses after U.S. President Donald Trump said he was considering 25% tariffs on Canada and Mexico as early as Feb. 1, citing concerns about illegal immigration at the U.S. border. Trump also mentioned China but did not provide further details.

The dollar has gained momentum since October, driven in part by concerns that Trump's "America First" policies and pro-growth stance could spur inflation, which in turn could discourage the Federal Reserve from cutting interest rates further. However, signs of easing U.S. inflation have raised expectations for a more dovish Fed policy, with markets now pricing in two 25 basis point rate cuts this year. The dollar strengthened broadly, with the Canadian dollar and Mexican peso facing the biggest declines. (AL)

Source: Trading Economicsc

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