US dollar dips as hopes for gradual tariff hikes boost risk sentiment

From Investing.com: 2025-01-14 05:52:00

The US dollar eased from 26-month highs on reports of gradual tariff increases, leading to a boost in risk sentiment. Treasury yields fell, while equities climbed and tech stocks remained under pressure. The Aussie and kiwi led the rebound as Chinese stocks jumped higher. Sentiment improved amid reports of gradual tariff hikes, with a potential increase of 2-5% a month to limit inflation impact. The dollar pulled back from two-year highs, and stocks rejoiced the news, with a potential reversal in rate cut expectations for 2025. US stocks experienced a patchy rebound, while US data and Fed speakers were eyed. In other markets, China optimism lifted the Aussie and kiwi, while the yen and pound struggled. Chinese stocks were top performers as the People’s Bank of China pledged support, and reports of a US business sale by TikTok to Elon Musk added to the optimism. Bond markets saw Japanese yields spike higher on speculation of a Bank of Japan interest rate hike. The euro and pound struggled, but the Aussie and kiwi rose against the dollar on improving China sentiment.



Read more at Investing.com: US Dollar Dips on Hopes of Gradual Tariffs Ahead of Inflation Data