DIGIVESTASI – The market reacted swiftly after hearing the speech of U.S. President Donald Trump. In his speech, Trump decided to postpone the implementation of new tariffs.

Several reports indicated that any new taxes would be applied more

cautiously. This news provided significant relief for currencies affected by trade.

According to Investing.com, on Tuesday, January 21, 2025, the yield on the 10-year Treasury bond fell by six basis points to 4.56 percent. This decline occurred because investors were concerned that the implementation of tariffs too quickly could trigger a surge in inflation once again.

In his inauguration speech, Trump also declared a state of emergency related to immigration and energy, as well as a more expansive foreign policy, including his plan to control the Panama Canal.

However, tariffs were only briefly mentioned in the speech, while a subsequent memo simply instructed agencies to investigate and address the growing trade deficit.

The market's reaction to the speech was very swift, with the dollar index dropping 1.2 percent in Monday's trading, marking the largest daily decline since the end of 2023. The index was last recorded at 108.010, just above the support level of around 107.70.