The dollar index (DXY00) on Monday rose by +0.24% and posted a new 2.5-week high. The dollar moved higher as President Trump's threats to impose 30% tariffs on goods from the European Union (EU) and Mexico, beginning August 1, risk stoking inflation pressures that could keep the Fed from cutting interest rates, a supportive factor for the dollar. Also, hawkish comments from Cleveland Fed President Beth Hammack supported the dollar Monday when she said she wants to see inflation fall further before she would support cutting interest rates.
Over the weekend, President Trump saidthe US will impose 30% tariffs on goods from the EU and Mexico, beginning August 1.
