Yahoo Finance Dollar Rises on Reports That Trump Might Raise Tariffs on Chinese Goods
Investing.com – The U.S. dollar rose on Wednesday after reports that cited three people familiar with the internal deliberations revealed that the Trump administration is considering to raise its planned 10% tariffs on $200 billion in Chinese goods to 25%.
An announcement could come as early as Wednesday, according to the reports.
"The jury is out on whether this is yet another 'clever' negotiating tactic by the U.S., but the market has reacted as expected and risk appetite looks set once again to pull back over the next couple of trading sessions," said Nick Twidale, COO at Rakuten Securities.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, rose 0.1% to 94.42 on Wednesday following the news.
The Chinese yuan and the Australian dollar, which is often used a proxy for China plays, both traded lower against the dollar following the reports.
Meanwhile, the Japanese yen slipped against the dollar, with the USD/JPY pair trading 0.08% higher at 111.96 after the Bank of Japan kept rates extremely low for an extended period and made some minor communication tweaks, as expected.
The Japanese central bank also kept its target for the 10-year government bond yield at around 0% and the short-term interest rate target at minus 0.1%.
In a statement, the Bank of Japan said it may take “more time than expected” to achieve its inflation target of 2%.
"It is a very mild policy change by the BOJ but its policy vector is heading towards tightening. The BOJ's message was to let long-term yields go higher," said Hiroaki Mutou, chief economist at Tokai Tokyo Research Institute.
The Bank of England will hold its policy meeting on Thursday.
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