Currencies
Dollar Rebounds as Trump Eyes More Canada, Mexico Tariffs
- Canadian dollar, Mexican peso dropped over 1% on the news
- Treasuries gain as cash trading resumes after US holiday
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The dollar bounced back after posting its steepest drop in 14 months amid bets that US President Donald Trump’s tariff plans would spur inflation and prevent further interest-rate cuts from the Federal Reserve.
Bloomberg’s dollar gauge rose as much as 0.7% in Asia Tuesday after slumping in New York trade as Trump said he may enact 25% tariffs on Mexico and Canada in February. Currencies of the two nations fell more than 1% against the greenback before paring the move.