Written by Kevin Buckland and Uncle Banerjee
TOKYO (Reuters) – The dollar weakened against major currencies on Tuesday after U.S. President-elect Donald Trump pledged to impose tariffs on all imports from Canada and Mexico and impose additional tariffs on China. I rebelled against it.
Stocks fell, part of a solid rally in the previous session in which stocks were buoyed by the nomination of Scott Bessent, a fund manager considered by investors to be the voice of Wall Street in Washington, to be Treasury secretary. caused the department to recoil.
Bessent's appointment also led to a sharp fall in U.S. yields as investors bought up U.S. Treasuries and the dollar weakened in pre-market trading.
The dollar rose 2% to 20.679 Mexican pesos and 1% to 1.4130 Mexican pesos as of 0040 GMT on Tuesday. In offshore trading, the currency rose 0.3% to 7.2681 yuan.
The US currency rose 0.14% to 154.43 yen, while the euro fell 0.5% to $1.0444.
“It's as if President Trump nominated Scott Bessent to be Treasury secretary, who the market expects will cool President Trump's momentum, so who is in control,” said Matt Simpson, senior market analyst at Citi Index. “It seems like they want to remind the market that they are doing well.”
“With the Canadian dollar strengthening against the Mexican peso, the market assumes this will hit Mexico the hardest.”
The pound fell 0.35% to $1.2526, while the Australian dollar fell 0.8% to $0.6453.
Australia's stock index fell 0.36%, a day after rising to a record high.
Japan's Nikkei Stock Average fell 1.3%, and South Korea's KOSPI fell 0.4%.
The Chinese market is also scheduled to open soon.
U.S. S&P 500 futures fell 0.3% after the cash index rose 0.3% overnight, while the small-cap Russell 2000 index also hit a record high.
President Trump imposed a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on products from China on his first day in office, citing concerns about illegal immigration and the illegal drug trade. announced.
“It was just last month that President Trump said, “The most beautiful word in the dictionary is tariffs,'' and the timing of the statement alone made it no surprise that he meant it,'' said senior Sean Callow. said. Foreign exchange analyst at ITC Markets.
“Depreciation in trade-sensitive currencies is natural and should continue in the short term.”
Bitcoin is stable near $94,111, consolidating after rebounding from last week's all-time high of $99,830. The token has benefited from speculation that the regulatory environment for cryptocurrencies will ease under the Trump administration.
(Reporting by Kevin Buckland and Ankur Banerjee; Additional reporting by Stella Qiu; Editing by Jacqueline Wong)
