Dollar Dives As Trump Team Hints At Delay To Tariffs

The dollar took a dive on Monday after US President-elect Donald Trump was quoted as saying he will not impose trade tariffs straight after his inauguration, which is set to take place later in the session.

Trump will issue a broad trade memo on Monday that stops short of imposing new tariffs on his first day in office, the Wall Street Journal reported on Monday. An official for the incoming administration confirmed the report.

Market participants had been expecting Trump to announce trade tariffs via executive orders.

Such a move would have increased expectations for a large-scale campaign, rising inflation and higher-for-longer Federal Reserve policy rates.

Markets seem to be taking comfort from a headline suggesting that day-one Trump tariffs are off the table. That said, we think this confidence might be a little misplaced. Broad based day-one tariffs were always unlikely, but more targeted import levies shortly after inauguration day are another question, Monex Europe head of macro research Nick Rees said.