Currency Waves: Market Braces for Trump's Tariff Announcement

The dollar edged higher as traders await President Trump's tariff announcement, potentially impacting global trade. The euro, sterling, and other currencies held steady. A 20% tariff on various products is under consideration, raising concerns about stagflation in the U.S. economy. The announcement may drive currency moves.

The dollar firmed slightly on Wednesday as global markets awaited U.S. President Donald Trump's announcement on new tariffs. Traders held their breath, expecting potential shifts in the currency landscape based on the details of Trump's trade strategy.

The euro and sterling remained stable, with the euro buying $1.0792 and sterling holding at $1.2924, as anticipation built around the scheduled White House announcement. Speculation suggests the imposition of broad new tariffs could reshape global trade practices.

Market sentiment is tense, and currency strategist Carol Kong highlights the possibility of significant currency movement post-announcement. Discussions in Washington hint at a 20% tariff on products from nearly all countries, potentially affecting the U.S. dollar positively but reigniting fears of stagflation.

(With inputs from agencies.)