The U.S. dollar rebounded against safe-haven currencies on Wednesday after President Donald Trump introduced a 90-day pause on most new tariffs, whereas sharply elevating duties on Chinese language imports to 125%.
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JOSE LUIS GONZALEZ/Reuters
The U.S. dollar rebounded against safe-haven currencies together with the yen and Swiss franc after President Donald Trump introduced a 90-day pause on many new tariffs on buying and selling companions however hiked duties on Chinese language items, escalating a confrontation.
Trump stated on Wednesday he had approved a 90-day pause in “reciprocal” 10% tariffs however was additionally elevating the tariff fee for China to 125%, efficient instantly.
The dollar had been weakening against its friends earlier within the session after Trump’s “reciprocal” tariffs on dozens of nations took impact on Wednesday, together with huge 104% duties on Chinese language items.
China had swiftly retaliated with an 84% tariff on U.S. items from Thursday, whereas EU international locations additionally permitted on Wednesday the bloc’s first countermeasures against U.S. tariffs.
“After markets efficiently put the administration on discover, the introduced “pause” appears prone to be prolonged past ninety days,” Karl Schamotta, chief market strategist at Corpay wrote in an investor observe.
On Wall Road, all three predominant indexes surged following the Trump announcement, with the Nasdaq leaping 7.7%, benchmark S&P 500 gaining 6%, and the Dow rising 5%.
The dollar was up 0.3% against the safe-haven yen to 146.765, reversing losses in early session commerce. It gained 0.45% versus the Swiss franc to 0.8500 franc.
Revealed on April 9, 2025
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