22.9 C
Surat
Friday, February 7, 2025
22.9 C
Surat
Friday, February 7, 2025

Currency Markets Roiled by Twin Threats of Tariffs and Tech



The U.S. dollar strengthened against major currencies on Tuesday as markets grappled with Trump’s expanded tariff threats and the aftermath of DeepSeek’s AI breakthrough. The dollar index recovered to 108 as traders reversed Monday’s risk-off moves, while the euro fell 0.7% to $1.04155. As the Federal Reserve begins its two-day meeting, market expectations have shifted, with rate cuts now anticipated around June, though Fed officials have already acknowledged potential impacts from Trump’s policies on their inflation outlook. The European Central Bank’s expected rate cut this week adds another layer of complexity to the currency landscape.



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