The dollar rose against major peers on Tuesday after U.S. President-elect Donald Trump threatened Canada and Mexico with a 25% tariff on all imports into the United States, reports Reuters.
Stocks were weak after strong gains globally in the previous session following fund manager Scott Bessent being nominated as Treasury Secretary, considered by investors as a voice for Wall Street in Washington.
“It’s almost as if Trump wants to remind markets who is in control, after nominating Scott Bessent as Treasury Sec – a man markets expected to cool Trump’s potency,” said Matt Simpson, senior market analyst at City Index.
The dollar jumped 1.5% to 20.58 Mexican pesos early in the Asian day, and climbed 0.84% to C$1.4103 . It added 0.14% to 154.43 yen .
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The euro slid 0.4% to $1.0453 and sterling lost 0.24% to $1.25405.
The Aussie dollar slumped 0.6% to $0.6466.
Australia’s stock benchmark (.AXJO), opens new tab fell 0.24% and Japan’s Nikkei futures lost 0.4%.
U.S. S&P 500 futures pointed 0.2% lower following a 0.3% gain in the cash index (.SPX), opens new tab overnight, when the small-cap Russell 2000 index (.RUT), opens new tab also hit an all-time high.