In light of Trump fees .. is the dollar the strongest for investors?

The pledge of US President Donald Trump to impose customs duties on all steel and aluminum imports increased the strength of the dollar against the decrease in the currencies of the countries exporting the basic commodities and Asian stocks, and the survival of the markets is tense about commercial turmoil, according to the American Bloomberg Network, and the question now is to what extent may continue. The dollar, and is it really the best alternative to investors?

Some currencies fell against the dollar

The value of the Australian, Canadian and Norwegian dollars fell in the wake of Trump’s statements, and the Asian stock index fell for the first time in a week, while currencies fell to regional countries where the Indian rupee decreased to its lowest level.
Also read: Why did the dollar remain near the highest level in two years? What are its expectations in 2025?

Expected tensions this week

Trump’s intention and announcement of a 25% tax on steel and aluminum added to the already strained feelings before the testimony of the Federal Reserve Speaker Jerome Powell the half of the Congress and the potential disclosure of the US President for mutual customs fees on “everyone” this week.
Trump said that customs duties on minerals will be applied to imports from all countries, although he did not specify when they will enter into force.

What analysts say?

About this, Bob Savage, head of the markets of markets and visions of the New York Bank, said: “The markets continue to respond to Trump’s policy transformations instead of economic data-any geopolitical impact and not purely economic-and the statements of the Federal Reserve Bank will be decisive to judge the costs of definitions Customs, and other political transformations in facilitation plans.
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In the context that Powell will submit his semi -annual testimony to Congress, Federal officials in the monetary system indicate that they are not in a hurry for more mitigation of psychological policy.

Pillars of the continuation of the strength of the dollar

This comes amid the slowdown in non -agricultural sector salaries last month, as reviews show that job gains in the United States were weaker but still strong in 2024.
The inflation data scheduled for this week may help support these arguments and support the market pricing to reduce federal interest rates only once this year, thus continuing the strength of the dollar.

A look at Asian variables

In Singapore, the shares of the “DBS” Holding Group, limited to a record, increased after the largest bank in Southeast Asia revealed a profit distribution plan.
Hong Kong stocks scared the trend and advanced while the Hang Sing Technology Index recorded its highest level since October on a daily basis, as it raised the growing artificial intelligence in the second largest economy in the world.

China challenges the domination of the dollar

Nevertheless, after countries are trying to challenge the dominance of the dollar, especially China, said Jin Yue Joe, a GB Morgan Asset Management, said: There are still interesting stories in the Chinese market, where some Chinese companies excel and more stimuli are pumped to the economy.

Other currencies fall against the dollar

Elsewhere, the South African Rand fell after the United States froze all aid to the country because of what Trump has falsely claimed human rights violations caused by a new law to confiscate lands as well as his fabricated allegations of genocide against Israel.
In a statement on Saturday, the South Africa Foreign Ministry expressed “it is very concerned that the basic hypothesis of this matter lacks realistic accuracy.”

Other havens are better than the dollar

However, it can be said that the Bloomberg Index for the dollar by 0.2% against a basket of international currencies does not represent a significant increase, but rather is very slight, which makes the dollar not the strongest alternative for investors, as there is demand for other havens such as gold and stocks.
The euro decreased by 0.2% to $ 1.0310, while the Japanese yen decreased and decreased by 0.3% to 151.93 yen for the dollar. The yuan also decreased by 0.1% to 7.3125 against the dollar.