Dollar Soars as Trump Threatens Tariffs on Canada and Mexico

The U.S. dollar strengthened against major currencies after President-elect Trump threatened a hefty tariff on imports from Canada and Mexico. Stocks weakened after a global surge. This follows the nomination of Scott Bessent as Treasury Secretary, perceived as an ally for Wall Street. The markets reacted accordingly.

The U.S. dollar experienced a significant rise against leading international currencies on Tuesday after President-elect Donald Trump issued a warning of imposing a 25% tariff on imports from Canada and Mexico to the United States.

Stock markets showed signs of weakness after a previous session's strong global gains, which occurred following the nomination of seasoned fund manager Scott Bessent as Treasury Secretary. Bessent is regarded by investors as a Wall Street advocate in Washington.

The dollar rose 1.5% against the Mexican peso early in Asian trading, increased by 0.84% to the Canadian dollar, and gained 0.14% against the yen. The euro, pound sterling, and Aussie dollar all faltered against the rising U.S. currency.

(With inputs from agencies.)