Trump's Tariffs Drive Dollar Surge

The U.S. dollar climbed against major currencies following President-elect Trump's announcement of a 25% tariff on goods from Mexico and Canada. The dollar increased notably against the Mexican peso and Canadian dollar, while Trump's Treasury pick, Scott Bessent, who supports tariffs, influences market dynamics.

The U.S. dollar soared against major currencies on Tuesday after President-elect Donald Trump announced plans to impose a 25% tariff on all products entering the United States from Mexico and Canada.

The greenback surged, gaining over 2% against the Mexican peso and 1% versus the Canadian dollar. The recent rise comes amid Trump's controversial appointment of hedge fund manager Scott Bessent as U.S. Treasury Secretary, prompting mixed reactions across markets.

While traders consider Bessent a Wall Street veteran and fiscal conservative, his open advocacy for a strong dollar and tariffs has raised concerns. Meanwhile, the dollar index, a measure against six key rivals, stood firm at 107.37.

(With inputs from agencies.)