Dollar rides Treasury yields higher as Trump's tariffs begin to bite
Treasury yields
on Wednesday, which in turn kept pressure on the yen after the latest U.S.
inflation report
showed signs that President Donald Trump's tariffs were beginning to feed into prices.
Rising prices on goods as varied as coffee, audio equipment and home furnishing pulled the inflation rate higher in June, with substantial increases in prices of the heavily imported items.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Đây có thể là thời điểm tốt nhất để giao dịch vàng trong 5 năm qua
IC Markets
Tìm hiểu thêm
Undo
That pushed the dollar and bond yields higher as investors pared back expectations of Federal Reserve interest rate cuts this year.
The jump in the dollar was most apparent against the yen, as it knocked the Japanese currency to a four-month low of 149.03 overnight. The dollar last traded at 148.90 yen.
The euro and sterling similarly languished near three-week lows hit in the previous session, and last bought $1.1608 and $1.3394, respectively.
Live Events
The tick up in U.S. prices of core goods "could be a sign that we're starting to see some inflationary pressure from tariffs creeping in" though it is too soon to tell "definitively", said Nathaniel Casey, investment strategist at Evelyn Partners.
"While this inflation report isn't especially alarming, the tick up in core goods, and the continued uncertainty around future tariff rates could still make the Federal Reserve and (Chair Jerome) Powell hesitant to want to cut rates," said Casey.
Traders are now pricing in roughly 43 basis points worth of Fed easing by December, down from just above 50 bps at the start of the week.
U.S. Treasury yields stayed elevated on Wednesday, with the benchmark 10-year yield scaling a one-month top of 4.4950%.
The two-year yield steadied at 3.9503%, having risen about 6 bps in the previous session.
That kept the U.S. dollar supported against a basket of currencies, as it hovered near a one-month high at 98.60.
Elsewhere, the Australian dollar edged 0.02% higher to $0.6517 after falling 0.45% on Tuesday. The New Zealand dollar rose 0.17% to $0.5955.
Also weighing on investors' minds was the prospect that Powell's eventual successor could be someone more inclined to lower interest rates, potentially fuelling price rises.
Trump has railed against Powell for months for not easing and repeatedly urged him to resign. On Tuesday, Trump said cost overruns on a $2.5 billion renovation of the Fed's Washington headquarters could amount to a firing offence.
"The additional unwanted attention on Powell has given some credence to the notion that we could see his early departure and an early nomination from Trump," said Molly Schwartz, cross-asset macro strategist at Rabobank.
In trade, Trump on Tuesday said the U.S. would impose a 19% tariff on goods from Indonesia under an agreement with the Southeast Asian country and that more deals were in the works.
He also said letters notifying smaller countries of tariff rates would be sent soon, and that his administration would likely set a tariff of "a little over 10%" for those countries.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
4 minutes ago
- India.com
Why Noted American Economist Said U.S. Wants A ‘Weaker' India; How His Prediction On Trump And Trade Deal Is Now Coming True
Washington/New Delhi: Sharing his views on India-U.S. trade relations, American economist Jeffrey Sachs expressed strong doubts about the possibility of a successful deal between the two countries. He said he would be very surprised if India managed to secure any trade deal with the United States because the U.S. government had no real interest in India's progress and aimed to keep the country weak. 'If India manages to strike a deal with the United States, I would be extremely surprised. This government (President Donald Trump's) does not care about India's well-being,' he told journalist Shweta Punj at the 'Rising Bharat Summit' hosted by Moneycontrol in April this year. Four months later, in August, the United States imposed a 25 percent tariff on Indian goods. The relationship between Washington and New Delhi has slid into a phase few predicted, but Sachs saw it coming. Once dismissed by some as exaggerated, his warning now feels eerily close to today's headlines. Trump's administration has made no secret of its stance, sanctions, public remarks criticising India's oil trade with Russia and repeated pressure over the India-Pakistan standoff. These moves, according to experts, chip away at India's autonomy and challenge the framework of sovereign diplomacy. India was among the few countries to engage early with Trump's White House for a trade agreement. The talks dragged on and nothing concrete emerged. The gap widened. Sachs tried to explain why, not with jargon but blunt words. 'America wants to use India against China. But make no mistake, this government has no interest in a stronger India,' he said. He asked people to trust what he had seen up close. 'Donald Trump is not going to open American doors to Indian manufacturers. This is a game and a strategic design to replace China, yes. But not with India,' he said. He called India a successful economy, not once but thrice. 'Very, very, very successful,' he said. He spoke of a future where India grows even stronger. In that future, Sachs said, America will not like what it sees, just as it does not like China now. Even if India opens its agriculture sector to U.S. companies, he said, the result would be the same. 'Trump will never let Indian goods flood the U.S. market. His whole idea is to block low-cost manufacturers. He is not going to let India replace China,' he said. Sachs did not stop at trade. He pointed to the larger structure, which is the global supply chain. 'They want India to help crush China. But they do not want India inside the system either. Not now. Not ever,' he added. He urged India to keep its options open. 'Never close the door to China or Russia because America's game is to prevent the rise of a strong India,' he said. Now, in August, his words feel less like a theory and more like a lived truth.
Time of India
4 minutes ago
- Time of India
Sin City in crisis? Las Vegas locals 'Freaking Out' as tourists vanish from the strip
Las Vegas workers hit hard as fewer tourists visit Nevada's tip tax law offers little help without customers Live Events FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Las Vegas, once known for its busy streets and flashy casinos, is now shockingly quiet, with some calling it a 'ghost town' on social media. Photos and videos online show almost empty roads and casino areas—a huge change for a city famous for always being are panicking as tourism drops hard. Las Vegas workers say they're "starting to freak out" because fewer tourists means less income. Tips for service workers are down by 50%, according to a Wall Street Journal report published on July 26. This drop has badly hit people in the hospitality and entertainment industries, as stated by Wall Street recently passed a law removing tax on tips, which should have helped workers. But locals say it doesn't matter much when there are no tourists to give tips. Charlie Mungo, a Las Vegas tattoo artist, said Canadians once made up 30% of his customers—but now they're gone, as stated by Hindustan are skipping US travel and products as a protest against President Trump's 25% tariffs on Canadian goods, as per the user on X said, 'WOW! Look at Las Vegas! It's almost like a GHOST TOWN,' with a photo showing nearly empty roads. Another X user, Alex Cole, shared a photo of an empty resort lobby saying 'Las Vegas is dead bro…' He added that the streets were packed last year at the same numbers also show a clear dip. Visitor numbers in Las Vegas dropped during the first four months of 2025. Passenger traffic at Harry Reid International Airport is also down by 4% for domestic flights in the first half of 2025, compared to last year, as stated in the report by Hindustan Vegas is seeing fewer tourists due to high travel costs, Canadian boycotts, and overall drop in domestic workers say their tips have dropped by up to 50% because fewer visitors are coming to the city.
Time of India
4 minutes ago
- Time of India
Adani Power seeks shareholders' nod for stock split
Adani Power will seek shareholders' approval for stock split in the ratio of 1:5 through postal ballot notice issued on August 1, 2025. According to the notice, the equity shares of the company of Rs 10 each will be sub-divided into five fully paid-up ordinary (equity) shares of the face value of Rs 2 each each, fully paid-up, ranking pari passu with each other in all respects, as per the document. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pune: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More The voting period begins from 9 am (IST) on August 6, and ends at 5 pm on September 4. During this period, the shareholders of the company, holding shares either in physical form or in dematerialised form, as on the cut-off date viz Friday, August 1, 2025, may cast their votes electronically. Adani Power was incorporated in 1996 and in 2009 got listed on the bourses. It has grown significantly in terms of its business and performance over the years resulting in a significant improvement in the market price of the company's securities. Live Events It explained that with a view to facilitate larger participation of retail investors and small potential investors in the company's future, the board of directors of the company in its meeting on August 1, 2025, approved and recommended the subdivision/split of equity shares of the company. It explained that the sub-division of equity shares of the company will require alteration to the existing capital clause i.e. Clause V of the Memorandum of Association of the company. There will not be any change in the amount of authorised, issued, subscribed and paid-up share capital of the company on account of sub-division/split of the equity shares, it stated. The record date for the aforesaid sub-division of equity shares shall be fixed by the board (or by any duly constituted committee thereof) after the approval of the members is obtained. The notice showed that post-stock split, the number of equity shares will increase from 2,480 crore to 12,400 crore.
