Euro hovers near 2year low, investors wary may fall to 1
Sterling nurses steep losses, eyes on UK gilt prices
Yen rooted near levels that brought intervention in July
Investors gird for Trump tariff plans

SINGAPORE, Jan 9 Reuters The U.S. dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multimonth lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on U.S. Presidentelect Donald Trump39;s policies as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

The evolving threat of tariffs has led bond yields higher, with the yield on the benchmark 10year U.S. Treasury note hitting 4.73 on Wednesday, its highest since April 25. It was at 4.6628 on Thursday.

Trump39;s shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years, said Kieran Williams, head of Asia FX at InTouch Capital Markets.

While tariff talk is likely to support USD in the short term, they also introduce complexities with unknown…