Dollar Trades Within Range Amid Tariff Uncertainty: Markets Wrap

The US dollar traded in a tight range early Monday as uncertainty lingered after President Donald Trump lashed out at the US Supreme Court for striking down his use of emergency powers to impose so-called reciprocal tariffs.

Risk currencies such as the Mexican peso edged lower while the euro and Japanese yen inched higher. The Thai baht, which is influenced by movements in gold, fluctuated. Bitcoin fell 1.4%.

Trump said Saturday he would raise a 10% global tariff to 15% to preserve protective trade measures, stoking fresh economic turbulence after the Supreme Court ruling. The friction spilled out Sunday as Europe’s trade chief said he’ll of a deal struck with the US, while India postponed talks to finalize an interim trade deal.

“We’ve got so much experience of Trump now that we don’t think he’ll take this lying down,” said Nick Twidale , chief market analyst at AT Global Markets. “The increased uncertainty and question marks around what Trump will do next outweigh any potential positives from lower tariffs and potential paybacks.”

Senior US officials said Trump’s tariff defeat at the Supreme Court won’t unravel deals negotiated with US partners.

Those deals — which the administration made with partners including China, the European Union, Japan and South Korea — remain in place, US Trade Representative Jamieson Greer said Sunday on CBS’s .

The added 0.7% Friday, notching its best week since Jan. 9, with optimism over the Supreme Court’s tariff ruling offsetting worries over heightened tensions between the US and Iran. An ETF tracking emerging markets hit all-time highs. The dollar slipped 0.2%, its weekly advance to 0.6%.

The yield on 10-year Treasuries rose two basis points to 4.08% in a volatile session Friday following mixed growth and inflation data before the tariff ruling uncertainties over any potential budget shortfall. Treasuries are closed in Asian trading on Monday due to a holiday in Japan.

Asian equity futures signaled a muted open in Australia, while Hong Kong shares looked set to rise, though the moves came before Trump announced the higher tariff rate. Equity markets in China remained closed for a holiday.

In commodities, traders will be on the oil market as the US and Iran are set to resume talks in Geneva in search of a diplomatic solution to the latest standoff over Tehran’s nuclear program.

Some of the main moves in markets:

Currencies

Cryptocurrencies

Stocks

Commodities

This story was produced with the assistance of Bloomberg Automation.