Trump's Tariff Drama: Will Promised Policies Fall Short?

The U.S. dollar eased as traders speculated on the possible outcomes of President-elect Donald Trump's tariff plans. Recent reports suggested tariffs might target specific sectors critical to U.S. security, but Trump denied such claims, influencing currency movements and market expectations.

The U.S. dollar softened into a one-week low against major currencies as the market speculated on President-elect Donald Trump's potential tariff policies. Traders are gauging the possibility that the tariffs might not be as forceful as initially promised.

Reports from the Washington Post indicated that Trump's advisors are considering tariffs on sectors deemed crucial to national or economic security. However, the currency rebounded after Trump refuted these claims on his Truth Social account.

The dollar index, which compares it to other currencies such as the euro and sterling, fell 0.14% to 108.16. Previously, it had dropped to its weakest level since December 30, raising questions about the impact of proposed fiscal measures and regulatory changes on U.S. economic growth.

(With inputs from agencies.)