Dollar Takes a Dive: Market Jitters Loom Over Trump's Trade Talk

The U.S. dollar dipped to a one-week low, affected by President-elect Donald Trump's tariff announcements on Canada, Mexico, and China. Market analysts are cautious of inflation risks possibly curbing Trump's policies. The yen rose on bets for a December rate hike in Japan, while global markets show mixed reactions.

The U.S. dollar dropped to its lowest level in a week against major currencies as investors became wary of President-elect Donald Trump's tariff promises.

Trump's proposed tariffs on Canada, Mexico, and China, key U.S. trade partners, have unsettled investors. Market observers are anxious about potential policy reversals from Trump, who assumes office in January.

With a keen eye on short-term economic indicators like the PCE price index, investors brace for potential inflationary risks that could derail Trump's trade strategies.

(With inputs from agencies.)