Dollar Falls on Report Trump Team Is Mulling Gradual Tariffs
- Kiwi, Taiwan dollar lead gains against greenback after report
- The moves show the importance of tariffs in swaying sentiment
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The dollar fell against almost every major currency and US Treasury yields dropped after Bloomberg News reported that Donald Trump’s incoming economic team is considering gradual hikes in tariffs.
The Bloomberg Dollar Spot Index slid as much as 0.4%, while the 10-year yield slipped three basis points to 4.75% after a report showed Trump’s economic advisors are discussing a slow and steady approach to tariffs rather than a large one-time increase. Such gradual restrictions could weigh on the dollar as they would slow inflationary pressure and potentially give more breathing room for the Federal Reserve to reduce interest rates.