The US dollar was boosted after US President-elect Donald Trump threatened BRICS member countries with 100% tariffs if they create or support a new currency that could replace the dollar. We require a commitment from these countries that they will neither create a new Brics currency nor back any other currency to replace the mighty US dollar or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy, Trump wrote on a social media platform. China and Russia are part of the Brics alliance, along with Brazil, India, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates. The dollar index that measures the greenback against a basket of currencies snapped its five day losing streak and reclaimed stance above 106 mark in line with US benchmark treasury yields that rose to 4.22%. Traders are now eyeing US economic data for Fed policy cues. While Fed officials highlighted easing inflation and a steady labor market, the cautious stance on rate cuts was duly noted.
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