Dollar rises sharply as Trump renews tariff threats on imports

The dollar rose sharply after President-elect Donald Trump renewed threats of tariffs on imports from China, Mexico, and Canada. This caused the offshore yuan to hit a four-month low and the Mexican peso and Canadian dollar to drop about 1%. Trump's comments signal a commitment to his campaign promises on trade, surprising investors who expected a more gradual approach following the nomination of Scott Bessent as Treasury Secretary. The dollar is now seen as a safe haven amid rising trade tensions. Traders are becoming cautious, reducing bullish positions on the Mexican peso and the Canadian dollar. Analysts suggest that the impact of Bessent's appointment was overestimated, as Trump's influence on trade policy remains significant.