Dollar Pares Losses After Trump Denies Curbed-Tariffs Report
- Bloomberg Dollar Spot Index fell 1%, most in more than a year
- FX speculators’ dollar longs rose by the most in 4Q 2024
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The US dollar pared a sharp decline against most major currencies on Monday after US President-elect Donald Trump denied a report that his tariff plans won’t be as broad as originally feared, with the currency volatility buffeting traders who have piled into long positions on the greenback to open the year.
The Bloomberg Dollar Spot Index ended the session down 0.6% after earlier falling more than 1%, the biggest intraday drop since 2023, following a Washington Post report that Trump aides were exploring a tariff plan that only covers critical imports. The euro rallied as much as 1.3% against the greenback, the common currency’s largest intraday gain in 14 months, while the pound also jumped as much as 1%.