The dollar fell amid volatile transactions

The dollar fell on Monday amid volatile transactions, after the publication of conflicting reports about the tariffs that US President-elect Donald Trump intends to impose when he takes office this month.

The dollar fell by up to 1.07 percent during today’s trading against a basket of major currencies, after the Washington Post reported that Trump’s aides were reviewing plans to limit customs duties to sectors important for national and economic security, which allayed fears of imposing broader tariffs.

But the dollar reduced its declines after Trump denied this report in a post on the Truth Social platform.

“The reality here is that Trump’s posts on Truth Social will lead to volatility in the currency market for a period of time, and the reaction we observed this morning reflects the underlying mechanisms,” said Carl Shamuta, senior market analyst at Corby in Toronto.

The dollar index, which measures the performance of the US currency against a basket of currencies, fell 0.59 percent to 108.32, with the euro rising 0.68 percent to $1.0379.

The dollar index reached its highest level in two years at 109.54 last week, after receiving support from the strength of the economy, the possibility of higher inflation due to customs duties, and the slow pace of interest rate cuts by the Federal Reserve (the US central bank).

The Chinese yuan rose 0.26 percent against the US currency to 7.341 to the dollar. The dollar reached a 26-month high against the yuan last week as China is seen as one of the main countries targeted by the tariffs.

The dollar rose 0.2 percent against the Japanese yen to 157.58 per dollar, while the British pound rose 0.64 percent to $1.2499.

Investors are awaiting a series of data on the labor market in the United States this week, the most important of which is the government jobs report that will be released on Friday.

The Canadian dollar rose 0.65 percent to 1.43 per US dollar, after Canadian Prime Minister Justin Trudeau announced on Monday his intention to resign from the presidency of the ruling Liberal Party.