Investing.com – The U.S. dollar fell on Monday after a report showed President-elect Donald Trump was ready to delay imposing trade tariffs immediately upon inauguration, raising expectations on the US 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 rose to a two-year high last week.
The Wall Street Journal reported Monday that Trump plans to issue a sweeping memo on his inauguration that will direct federal agencies to examine trade policies and evaluate US trade relations with China and America's continental neighbors. – but he won't stop imposing new taxes on his first day in office.
The memo, seen by the WSJ, suggests debates are still ongoing within the incoming administration over how to fulfill Trump's campaign trail promises of big tariffs. on imports from trade rivals such as China.
The dollar has gained about 4% since November's presidential election as traders expected Trump's policies to be inflationary, requiring higher interest rates for a longer period of time.
“Financial markets are trying to see what executive orders US President Donald Trump will implement on his first day,” said analysts at ING, in a note.
“The FX markets are very interested in what he has to say about tariffs and what kind of pain the Oval Office intends to inflict on major trading partners.”
