Dollar Rallies as Court Blocks Trump's Tariff Imposition
The U.S. dollar gained strength after a court blocked President Trump's import tariffs, providing relief amidst trade tensions. Despite an initial spike, analysts remain skeptical of sustained growth. The greenback's recent decline is linked to uncertainties from Trump's trade policies. U.S. stock futures jumped, reflecting improved investor sentiment.
A pivotal court decision temporarily halted President Donald Trump's tariff imposition, bolstering the U.S. dollar against its major counterparts. This ruling provided a respite for the currency, which has been grappling with challenges throughout the year due to ongoing trade uncertainties.
Reacting swiftly, the Trump administration lodged an immediate appeal. While the future of these tariffs is unclear, experts anticipate that a reversal could lead to further dollar appreciation. Market instability has witnessed U.S. assets, including equities and Treasury bonds, stumble under the weight of Trump's unpredictable economic policies.
In trading, the dollar advanced 0.64% against the yen, settling at 145.77, having peaked at a two-week high earlier. It also gained 0.67% against the Swiss franc. However, the euro and sterling exhibited declines. Despite initial boosts, analysts warn that the protracted legal process may hinder a sustained dollar rally.
(With inputs from agencies.)
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