Back to today’s briefing

Story perspectives

Dollar Dips Amid Tariff Hike Speculations, Analysts Predict Rebound

1/16/2025

30 6

Summary

Story summary

The dollar slipped against key currencies as whispers of gradual tariff hikes from Donald Trump's economic team aimed at curbing inflation surfaced. The Bloomberg Dollar Spot Index dipped 0.4%, affecting risk-sensitive currencies like the Australian and New Zealand dollars. Analysts foresee a brief dip in the dollar's strength, anticipating a rebound fueled by robust US economic performance.

History

Historical Context

Tariffs have long affected the U.S. economy, echoing the Smoot-Hawley Tariff Act of 1930, which worsened the Great Depression. Trump's recent tariff discussions mirror this historical precedent, revealing how protectionist policies can lead to economic uncertainty and diminished global trade, impacting currency strength and consumer prices.

1 of 2

Story summary

The dollar slipped against key currencies as whispers of gradual tariff hikes from Donald Trump's economic team aimed at curbing inflation surfaced. The Bloomberg Dollar Spot Index dipped 0.4%, affecting risk-sensitive currencies like the Australian and New Zealand dollars. Analysts foresee a brief dip in the dollar's strength, anticipating a rebound fueled by robust US economic performance.

1 / 2