The pound has lost some of its earlier gains against the dollar after Donald Trump took to his Truth Social platform to declare that the Washington Post’s story on his tariff policy is wrong.
“The story in the Washington Post, quoting so-called anonymous sources, which don’t exist, incorrectly states that my tariff policy will be pared back,” he said.
“That is wrong. The Washington Post knows it’s wrong. It’s just another example of fake news.”
Earlier in the day, the pound bounced from an eight-month low against the dollar after the Post claimed the US president-elect was considering imposing tariffs on only critical imports from all countries, suggesting there would be fewer tariffs than had been feared.
Tariffs are expected to be inflationary in the US and may cause the Federal Reserve to cut interest rates more cautiously, supporting demand for the dollar from overseas investors, versus other currencies such as the pound.
Leave a Reply