Dollar rebounds on Trump tariffs, stocks point lower
The dollar rose against major peers on Tuesday after US President-elect Donald Trump threatened Canada and Mexico with a 25 per cent tariff on all imports into the United States.
Stocks were weak after strong gains globally in the previous session following fund manager Scott Bessent being nominated as Treasury Secretary, considered by investors as a voice for Wall Street in Washington.
“It’s almost as if Trump wants to remind markets who is in control, after nominating Scott Bessent as Treasury Sec – a man markets expected to cool Trump’s potency,” said Matt Simpson, senior market analyst at City Index.
The dollar jumped 1.5 per cent to 20.58 Mexican pesos early in the Asian day. It added 0.14 per cent to 154.43 yen.
The euro slid 0.4 per cent to $US1.0453 ($A1.6071) and sterling lost 0.24 per cent to $US1.25405 ($A1.92805).
The Aussie dollar slumped 0.6 per cent to $US0.6466 ($A0.9941).
Australia’s stock benchmark fell 0.24 per cent and Japan’s Nikkei futures lost 0.4 per cent.
US S&P 500 futures pointed 0.2 per cent lower following a 0.3 per cent gain in the cash index overnight, when the small-cap Russell 2000 index also hit an all-time high.
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