The dollar notched up its sharpest rise since the day after Donald Trump’s election victory, following his threats of huge tariffs on Brics nations and as French political tumult escalated.
The dollar index, a measure of the currency against six peers, rose 0.6 per cent on Monday. The euro was among the biggest laggards as France’s government teetered on collapse, but other major currencies, including the UK pound and Canadian dollar, also slipped.
Monday’s gains marked the latest leg of a powerful rally for the dollar, which was boosted by Trump’s win in last month’s presidential election. Investors have been betting that Trump’s tariff plans will be inflationary, hampering the Federal Reserve’s ability to reduce interest rates.