Dollar index climbs above 100 after US court blocks Trump's tariffs

The dollar rose against six major currencies with a slight correction on Thursday, May 29, following the US Federal Trade Court's ruling blocking the US president's tariffs. The court ordered Trump to revoke the relevant directives.

On Wednesday, May 28, the US Trade Court struck down Trump's trade levies and established that the president had no authority to impose additional duties on imported goods. In response, the Trump administration immediately filed an appeal.

Hirofumi Suzuki of SMBC attributed the yen's weakening against the dollar to an initial reaction. He does not anticipate sustained growth of the American currency, as legal proceedings are expected to continue.

Markets are keeping an eye on the dollar index, which has dropped 8% since the start of the year, and note that the trade court's decision did not shed light on the commercial outlook. With protracted legal proceedings anticipated, a sustained rally in the US currency is unlikely.

The dollar index (DXY) is up 0.15% at 100.019.

The euro declined 0.147% to $1.12730, the Japanese yen dropped 0.29% to 145.23, while the Australian dollar weakened 0.4% to $0.6441.