INSUBCONTINENT EXCLUSIVE:
other major trading partners sparked the decline
The Bloomberg Dollar Spot Index closed 1.6% lower compared to the previous Friday
He suggested a 25% tariff on these countries and a 10% tariff on China, potentially starting February 1, 2025
However, no concrete executive orders have been signed yet
The president has directed the Treasury and Commerce departments to review current trade relationships.The Tax Foundation estimates
significant economic impacts if these tariffs are implemented
They project a 0.4% shrinkage in economic output and $1.2 trillion in increased taxes between 2025 and 2034
The foundation also predicts a reduction in long-run GDP and the loss of 344,000 full-time equivalent jobs.United States Currency Hits
14-Month Low Amid Trade Uncertainty
The British pound led gains among G10 currencies, rising over 2.5% against the greenback
The euro also tracked towards its best week since 2023
estimate that traders have unwound about two-thirds of the tariff risk premium
However, the bank still expects US economic outcomes to support the dollar in coming months
They believe Trump will actively use tariffs, potentially changing market interpretations soon.United States Currency Hits 14-Month Low
Amid Trade UncertaintyDespite the current dip, some experts advise caution in selling the US dollar
State Street Global Advisors anticipates continued dollar strength into Q1 2025
They cite superior growth, rising yields, and safe-haven appeal as supporting factors
Some analysts predict a 10-15% decline over a two-year horizon
They cite potential reversion of US yields and growth towards G10 averages as factors
