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07.07.202518:10:33UTC+00DXY Extends Rebound

The US Dollar Index regained momentum, rising above the 97.5 mark on Monday, as markets adjusted to an intensifying tariff initiative by President Trump, slated to commence on August 1st. In two posts on Truth Social, President Trump announced the imposition of 25% tariffs on all imports from Japan and South Korea. This move extends the broader reciprocal tariff strategy, exempting only those nations with preliminary trade agreements and includes a warning of an additional 10% duty on countries adopting "anti-American" BRICS policies. Treasury Secretary Scott Bessent indicated that notifications detailing tariff rates would be sent out in the upcoming days, creating a sense of urgency among trading partners eager to secure exemptions. Concurrently, positive US labor statistics—147,000 payroll additions in June compared to the 110,000 anticipated and a drop in the unemployment rate—helped alleviate concerns about a swift Federal Reserve interest rate reduction.

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