U.S. dollar strengthens after Trump announces tariffs on Mexico and Canada

The U.S. dollar strengthened on Tuesday after President-elect Donald Trump announced plans for a 25 percent tariff on imports from Mexico and Canada. The dollar rose over 2 percent against the Mexican peso and 1 percent against the Canadian dollar. This increase follows a period of weakness for the dollar, which had been affected by Trump's nomination of Scott Bessent as Treasury secretary. Bessent is seen as a fiscal conservative who supports a strong dollar and tariffs. In other currency movements, the euro fell 0.6 percent against the dollar, while the Australian dollar dropped 0.75 percent. Bitcoin traded at $93,577, down from its recent high, as traders took profits ahead of the $100,000 mark.