Trump's planned tariffs are weakening sentiment toward the U.S. dollar, prompting a shift in currency market positions, according to CNBC. The dollar index was flat Wednesday after peaking in mid-January and losing some gains made in late 2024. The dollar is viewed as a haven due to its role as the world’s reserve currency and dominance in global trade and finance. A stronger dollar makes U.S. exports more expensive, affects global capital flows, and influences monetary policy and earnings. Traders are turning bearish on the dollar and favoring currencies of major U.S. trading partners ahead of a possible multinational trade war, according to RSM’s Joseph Brusuelas.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Trump's planned tariffs are weakening sentiment towards the U.S. dollar,
00:05prompting a shift in currency market positions, that according to CNBC.
00:09The dollar index was flat Wednesday after peaking in mid-January
00:12and losing some gains made in late 2024. The dollar is viewed as a safe haven due to its role
00:17as the world's reserve currency and dominance in global trade and finance.
00:21A stronger dollar makes U.S. exports more expensive,
00:24affect global capital flows, and influences monetary policy and earnings.
00:28Traders are turning bearish on the dollar and favoring currencies of major U.S. trading partners
00:33out of a possible multinational trade war, according to RSM's Joseph Berzelis.