Investing.com – The U.S. dollar fell on Monday after reports showed President-elect Donald Trump is ready to delay imposing trade tariffs immediately after his inauguration, an expectation that boosted the U.S. currency after his election victory in November.
At 09:20 ET (14:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was trading 1.1% lower at 108,020, after climbing to a more than two-year high last week year.
The Wall Street Journal reported Monday that Trump plans to issue a sweeping inauguration memo directing federal agencies to study trade policy and evaluate U.S. trade relations with China and America’s continental neighbors — but not impose new tariffs on his first day in office.
The memo, seen by the WSJ, suggests discussions are still ongoing within the new administration about how to fulfill Trump’s campaign promises of high tariffs on imports from trade rivals such as China.
The dollar has gained about 4% since the November presidential election as traders expected Trump’s policies to be inflationary, which would require higher interest rates for a longer period.
“Financial markets are anxious to see what executive orders US President-elect Donald Trump will deliver on his first day,” ING analysts said in a note.
“FX markets are most interested in what he has to say about tariffs and what kind of pain the Oval Office plans to inflict on major trading partners.”
