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US Dollar Continues to Rise Due to Tariff Concerns
The US dollar continues its ascent, driven by anticipated US tariff threats, which may take effect on February 1st.
These threats include those reiterated by US President Donald Trump since his official inauguration speech, stating his intention to impose a 25% tariff on US imports coming from Canada and Mexico.
Economic data has also emerged, highlighting a higher-than-market-expected rise in US consumer spending last December. These figures favor expectations of keeping interest rates unchanged, and thus the US currency continues to climb.
Michelle Bowman, a member of the Federal Reserve Board of Governors, confirmed that more progress should be seen in terms of declining US inflation before the central bank resumes cutting interest rates again.
The dollar index, which measures the performance of the US currency against a basket of major currencies, rose to 107.90 points, compared to the close recorded at the end of the previous trading day at 107.80 points. The index fell to its lowest level in the current trading day at 107.87 points, compared to the highest levels recorded at 108.44 points.
