The dollar index (DXY00) Monday rose by +0.52% and posted a 3-week high. The dollar jumped Monday after President Trump imposed 25% tariffs on goods from Canada and Mexico and a 10% tariff on Chinese goods, effective Tuesday. The dollar also found support on Monday’s plunge in the Canadian dollar to a nearly 22-year low. In addition, Monday’s slump in stocks boosted liquidity demand for the dollar. The dollar raced to its highs Monday after the US ISM manufacturing and construction spending reports were stronger than expected.
The dollar fell back from its best levels after President Trump agreed to delay tariffs on Mexico for a month after conversing with Mexican President Sheinbaum.
