BUZZ-COMMENT-Trump tariff risks keep FX market in state of flux
Jan 28 (Reuters) - U.S. tariff vibes continue to exert a material impact over foreign exchange rates, with the ebb and flow keeping traders on their toes.
The dollar strengthened after the Financial Times reported that U.S. Treasury Secretary Scott Bessent has been pushing for new universal tariffs on U.S. imports to start at 2.5% and rise gradually by the same amount each month (potentially up to 20%).
The greenback added to its Bessent-spurred gains following President Donald Trump's remarks about imposing tariffs in a speech to Republican lawmakers on Monday.
The USD index, which plumbed a five-and-a-half week low of 106.96 on Monday as "U.S. exceptionalism" was called into question by Chinese AI startup DeepSeek, rose to a high of 108.02 on Tuesday courtesy of Bessent and Trump.
The dollar might appreciate further if Trump follows through on his threat to impose 25% tariffs on imports from Canada and Mexico on Feb. 1, or depreciate if he does not.
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