Trump's Economic Policy Sparks Market Volatility

The dollar rebounded sharply on Tuesday following a steep decline, coinciding with Donald Trump's presidency return. Mixed messages about trade tariffs led to market fluctuations, with notable changes in the Mexican peso and Canadian dollar. Trump's impact on global markets remains uncertain, sparking investor sensitivity.

The dollar surged on Tuesday after an earlier slump, as Donald Trump's return to the U.S. presidency delivered mixed signals on trade tariffs. Investors remain wary, reacting swiftly to Trump's economic policy announcements.

Monday night saw the Mexican peso and Canadian dollar tumble after Trump suggested potential 25% tariffs on neighboring countries, driving the peso down 1.3% against the dollar and pushing the Canadian currency to a five-year low. However, a presidential memo later calmed markets, indicating no immediate tariffs would be imposed.

Despite initial optimism, European equities and U.S. stock futures showed mixed reactions. Meanwhile, Trump's delay on tariff actions has underlined market volatility, with the dollar index staging a recovery by Tuesday afternoon. The world watches as Trump navigates complex trade relationships, maintaining tariffs firmly on his agenda.

(With inputs from agencies.)