Dollar Gains as Trump Warns of New Tariffs

The U.S. dollar rose for the third consecutive session amid President Trump's tariff warnings. He plans to announce 25% tariffs on steel and aluminum imports. Global stocks advanced despite market concerns. Traders are watching for potential inflation pressures on U.S. interest rates following Trump's comments.

The U.S. dollar registered gains for the third consecutive day following President Donald Trump's warning of impending tariffs, which include 25% on steel and aluminum imports. This announcement is expected by Tuesday, with further reciprocal tariffs also on the horizon.

Amid these developments, China's retaliatory tariffs on U.S. exports took effect Monday, signaling no imminent trade deal between Washington and Beijing. Despite these trade tensions, Wall Street saw growth led by energy and tech sectors, while European markets closed at a record high driven by oil and gas stocks.

Analysts express concerns over potential U.S. inflation pressures due to these tariffs, possibly affecting the Federal Reserve's rate cut options. Fed Chair Jerome Powell's upcoming testimony is anticipated for insights into monetary policy adjustments regarding tariffs and inflation prospects.

(With inputs from agencies.)