The dollar weakened on Friday and was on the worst Sunday route in more than a year amid expectations that the tariff imposed by US President Donald Trump would be lower than previously feared and the possibility would not trigger the international trade war.
Prospects of high tariffs on goods from countries including China, Canada, Mexico, and Euro zones have increased concerns about new inflation attacks, which have helped encourage treasury and US dollars to be higher in recent months.
But the step turned around this week because traders bet that the tariff may not be as big or as large as previously worried. Trump said on Thursday that his conversation with Chinese President Xi Jinping last week was friendly and he thought he could reach a trade agreement with China.
“The public is increasingly unsure that the tariff will be implemented,” said Adam Button, Head of Currency Analyst at Forexlive in Toronto.
The last dollar index fell 0.67% today at 107.42. The price reached 110.17 on January 13, the highest since November 2022. Prices are on the path of a 1.83% decline this week, the largest weekly decline since November 2023.
Yuan China also received encouragement because Trump’s statement, with the domestic unit rose to its strongest level in eight weeks at 7,2363 per dollar.
Trump also said on Thursday that he wanted Federal Reserve to reduce interest rates, before the US central bank held a meeting next week.
President Trump has asked the Fed to lower interest rates, but will they listen to it?
The Fed is expected to keep the interest rates unchanged when ending his two -day meeting on Wednesday, although investors will observe any instructions that interest rates can occur in March if inflation continues to decline to approach the annual target of the US central bank by 2%. .
Data on Friday shows that US business activities slow down to the lowest level in nine months in January amid increasing price pressure, while house sales in the US increased to the highest level in 10 months in December.
Euro rose 0.83% to $ 1,0501. This currency is prepared for a weekly increase of 2.25%, the best week since July 2023.
This single currency was boosted by a survey that showed that the Euro zone business began the new year with a little growth of growth because service activities that were stable in January were complemented by the reduction in a long -standing manufacturing.
Yen rose slightly in a waved trade after Bank of Japan raised interest rates on Friday to the highest level since the global financial crisis in 2008 and revised the estimated inflation.
Governor Boj Kazuo Ueda said the central bank would continue to raise interest rates along with the expansion of wage and price increases, but only gave a little instructions regarding the time and speed of future interest rates.
The last dollar fell 0.08% today at 155.92 yen.
Sterling rose 0.89% to $ 1,2462 and prepared to increase 2.44% for this week, after decreasing for three consecutive weeks.
In crypto currency, Bitcoin rose 2.48% to $ 105,678.69.
Trump on Thursday ordered the formation of a crypto currency working group in charge of proposing new digital asset regulations and exploring the creation of national crypto currency inventory, fulfilling his promise to immediately overhaul the US crypto policy.
Source: Reuters (Report by Karen Brettell in New York; Additional Reports by Rae Wee in Singapore and Greta Rosen Fondahn in Gdansk; Interaction by Toby Chopra)
