Supreme Court's Tariff Strike: Implications for Global Markets

The dollar weakened on Monday following the U.S. Supreme Court's decision to dismantle most of former President Donald Trump's sweeping tariffs, a move seen as boosting global growth prospects. However, tensions in the Middle East kept currency movements cautious.

The euro and the British pound both saw gains, with the euro rising 0.4% to $1.1823 and the pound mirroring this increase to reach $1.3521. The U.S. dollar, by contrast, fell 0.4% to 154.42 yen, as traders absorbed news of the court finding Trump's tariffs exceeded his presidential authority, prompting him to retaliate with new duties.

Market analysts are now assessing the long-term implications, including possible fiscal impacts on the U.S. and shifts in global trade dynamics. Meanwhile, uncertainties mount due to ongoing U.S. military pressures in the Middle East and anticipation of Trump's upcoming State of the Union address.