Dollar Erases Drop as Traders Mull Trump’s Next Steps on Tariffs

Ruth Carson and Abhishek Vishnoi

Mon, February 23, 2026 at 9:23 PM GMT+9 2 min read

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DX-Y.NYB

-0.01%

Bloomberg

(Bloomberg) – The dollar recouped early losses on Monday as traders considered the impact of President Donald Trump’s latest plan for global tariffs on US imports.

A Bloomberg gauge of the greenback was little changed after falling as much as 0.3% earlier in the trading session. Treasuries also posted modest moves, with the 10-year yield holding at 4.07%.

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While the Supreme Court’s ruling last week struck down many of the tariffs that Trump put in place, the US president has shown no sign of backing down from his signature economic policy. The administration has said it plans to replace the prior tariffs with a new global levy of 15%, injecting fresh uncertainty into US trade deals.

“We see the new path for the dollar as lower and think that last year was just the start of a multi-year trend,” said Hugh Gimber, global market strategist at JP Morgan Asset Management, in an interview with Bloomberg TV.

While the economic impact won’t show up immediately, it adds a new layer of complexity, Gimber added. “There’s just a lot more now that businesses and investors are going to have to be grappling with.”

Traders are closely watching how other world leaders are responding to the latest tariff developments for cues on their next market bets. In Europe, officials are poised to freeze the ratification process of its trade deal with the US.

It will also be important to monitor any developments in the Trump administration’s stance on the dollar, said Derek Halpenny, head of global markets research at MUFG Bank. The president often suggests that he wants the dollar to weaken against other major currencies, seeing it as a way to boost demand for US goods.

“There is a risk that the administration lean on this more explicitly given the setback on its reciprocal tariff regime,” Halpenny said.

–With assistance from Will Standring, Alice Gledhill and Farah Elbahrawy.

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