Market Jitters: Dollar Dives as Trump Holds Off on Tariffs

The dollar fell and European stocks rose when it was revealed that President-elect Donald Trump would not immediately impose tariffs. The dollar's decline was sharp against currencies of major trading partners, while Trump's new cryptocurrency, $TRUMP, soared. Global markets await further details on potential tariffs.

The dollar experienced a significant downturn on Monday in response to news that President-elect Donald Trump would refrain from imposing tariffs during his inauguration. This decision boosted European stocks, with the pan-European STOXX 600 index climbing by 0.3%.

The greenback faced a 1.3% drop against currencies of key trade nations, including the Canadian dollar and Mexican peso. Trump's inauguration speech promised a 'brand new day of American strength,' raising market expectations of immediate policy actions.

$TRUMP, a new cryptocurrency launched by Trump, reached a market value nearing $12 billion. Meanwhile, eurozone bond yields steadied, and gold and crude oil prices fluctuated amid anticipation that Trump might relax restrictions on Russia in exchange for a Ukraine truce.

(With inputs from agencies.)