(Reuters) World equity markets slid further and the U.S. dollar dropped to its lowest in more than two years against the yen on Friday as concern over a global trade war added to investor uncertainties about rising inflation and the outlook for U.S. interest rates.
Trump’s move could herald the tough actions on trade he had promised during the electoral campaign as a way to incentivize companies to just “buy American, hire American,” said John Doyle, vice president of dealing and trading at Monex Inc. in Washington.
“The U.S. dollar may face some scrutiny and as a result struggle to hold on to recent gains,” Doyle said. “It is the type of scenario that is unprecedented, thus wild swings may occur as this is digested and analyzed the next few days.”