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Earlier on Monday, Donald Trump’s tariffs were swept on the currency market. As investors were eager to evaluate how taxes would affect the largest trading partners in the United States, the Canadian US dollar and Mexican Bisso were hit.
At the beginning of the Asia -Pacific transaction, Canada’s US dollar bears pressure to 1.4 % to 1.473 Canadian dollars, the lowest level since 2003. Mexico’s peso has dropped by more than 2 % on the exchange rate of the US dollar, exceeding 21.15. The euro also lost 1 %.
The transaction volume is usually very thin at the beginning of the meeting, which will exacerbate price changes.
After Trump levied a 25 % tariff on all imports to Mexico and Canada on Saturday, the sharp decline in declined, Canada’s energy levied 10 % of its collection, and new 10 % imported from China. He also threatened the new tax of the European Union last week.
Economists have warned that new tariffs are likely to accelerate the inflation in the United States, which increases the yield production of the state treasury, and Trump’s US dollar was elected in November.
Eric Winography, the chief economist of Alliancebernstein, said: “The most obvious meaning is one dollar.” “The long dollar position is the cleanest and clearest expression in the current launch of the trade war. “
Winography added: “The biggest currency is the currency of tariffs.”
George Saravelos of Deutsche Bank said that the tariff announcement is “the most hawk in the scope of trade protectionism we can originally conceived” and the market needs to “structural and major re -cultivation of the risk premium of trade war.”
The Mexican peso whipped in recent weeks, because traders carefully studied the new Trump administration’s announcement to understand the speed of any new tax and the clues of extensive taxes.
“If the tariffs lasted for several months, the exchange rate would reach a new historical high.” ” Structural changes.
In contrast, BBVA Mexican analysts said they believed that tariffs were unlikely to last for a long time. However, if they do maintain their original state, he said that they will have a “very negative” impact on Mexico’s investment and their competitiveness.
