The US Dollar Index (DXY) rose above the 97.8 level on Tuesday, rebounding after coming under pressure in the previous session as investors continue to assess the uncertainty surrounding US trade policy.
Legal and trade developments
In the latest development, global logistics giant FedEx filed a lawsuit seeking a full refund of duties paid after the US Supreme Court struck down “emergency tariffs” previously imposed by President Donald Trump.
Over the weekend, Trump threatened to hike global baseline tariffs from 10 percent to 15 percent in response to the court’s decision.
He warned that nations “playing games” with existing trade agreements could face even steeper penalties.
These policy shifts have sparked fears of a potential collapse in current trade pacts, although major trading partners have so far remained committed to their agreements with Washington.
Geopolitical and currency context
On the geopolitical front, markets remain focused on renewed talks between the US and Iran, scheduled for this Thursday.
Japanese media reports alleged that US authorities reviewed interest rate policies last month to support the Yen.
Edited translation from Al-Masry Al-Youm
