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Dollar Plummets Amid Fed Rate Check; Trump Threatens Tariffs on South Korea
The U.S. dollar experienced a significant decline late last week after the New York Federal Reserve conducted a rare rate check with currency traders on the dollar-Japanese yen exchange rate, according to Fortune. This action, reportedly requested by the U.S. Treasury, fueled speculation that the U.S. government might be considering coordinated action with the Bank of Japan to bolster the yen. Concurrently, President Donald Trump threatened to increase tariffs on South Korean goods due to the country's national assembly's failure to approve last year's trade framework, Fortune reported.
The dollar's value decreased by more than 2.26% against a basket of international currencies over the past five days, a notably steep drop given the dollar's prominence in the global economy. Fortune noted that the yen had risen more than 3% against the dollar during the same period. Traders responded to the rate check news by selling off dollars.
President Trump stated on social media that import taxes would be raised on autos, lumber, and pharmaceutical drugs from South Korea, with rates on other goods increasing from 15% to 25%, according to Fortune. Trump had previously imposed the tariffs by declaring an economic emergency, bypassing Congress. He stated, "Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to."
In other news, TikTok users expressed concern over the app's updated U.S. privacy policy, which explicitly listed citizenship or immigration status among the types of sensitive information the platform may process, Fortune reported. Parom, speaking to Fortune, noted that the specific wording related to immigration status appeared in multiple earlier versions of TikTok’s policy, including the most recent version from Aug. 19, 2024.
Meanwhile, British retailer JD Sports Fashion is looking to expand its presence in the booming U.S. sneaker market, Fortune reported. JD Sports Fashion currently has nearly 400 stores in North America and plans to reach 800 by opening new stores and converting existing Finish Line locations.
In China, artificial intelligence is becoming an integral part of the curriculum for some children, according to NPR. Fifth-grader Li Zichen, a student at a Chinese public school, demonstrated a remote-controlled robot that can lift and move blocks and be programmed using AI.
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