Forex
Dollar Index Reaches Three-Week High Amid Tariffs and Escalating Tensions
The US dollar index has reached a three-week high of around 101.3 as the latest tariffs imposed by President Donald Trump on major trading partners continue to raise concerns about a renewed tariff wall.
Under the new framework, imports from countries including Mexico, Canada, the UK, and India will face 10% tariffs linked to alleged forced-labor concerns, while goods from the European Union and Taiwan will be capped at 10%.
The greenback has also gained support from rising expectations of tighter Federal Reserve policy amid escalating Middle East tensions that have fueled energy prices, as well as resilient US labor market conditions.