Market News
Pound inches higher after Trump's tariff announcements and Fed decision - YAHOO FINANCE
The pound advanced against the dollar (GBPUSD=X) on Thursday morning, up 0.1% to $1.3253 at the time of writing, following a number of US tariff announcements ahead of president Donald Trump's extended deadline for agreeing trade deals on Friday.
The US dollar index (DX-Y.NYB), which tracks the greenback against a basket of six currencies, was little changed at 99.74.
Trump announced a trade deal with South Korea on Wednesday evening that will see the US place 15% tariffs on imports from the country.
Earlier on Wednesday, the president made other moves on tariffs, including threatening a 25% levy on goods from India and slapping massive 50% duties on imports from Brazil. Trump also suggested that beginning 1 August, India could pay an additional penalty because of its ties with Russia.
In addition, the president announced a 50% tariff on copper pipes and wiring that will also come into place on Friday.
Investors were also digesting the Federal Reserve's decision on Wednesday to keep interest rates on hold in the range of 4.25% to 4.5%.
Jim Reid, a market strategist at Deutsche Bank (DBK.DE), said: "The prepared statement saw a modest downgrade to the language on growth, but Powell’s press conference leaned more hawkish as he painted a picture of a solid US economy with a labour market that is in balance.
