The US dollar weakened against the Japanese Yen and Franc Swiss on Monday when the market wrestled with trading tension over the tariff and the possibility of slowing the US economy, while the increase in the euro was peeled from last week.
The market has been fixed on trading tension after US President Donald Trump slapped tariffs on the top trading partners only to delay some of them for a month in the midst of US slowdown fears.
The dollar weakened 0.76% to 146.91 against Japanese Yen after being traded as low as 146,625 in the session, the lowest since the beginning of October last year. Against the Swiss francs, the dollar weakened 0.06% to 0.879 – reaching the lowest level since early December.
The Euro was 0.03% higher to the dollar at $ 1,083350 but floated near the highest four months because the market was waiting for details on the possibility of encouragement for European expenditure. The single currency scored its best week in 16 years last week.
The Minister of Finance of the European Union will meet Monday to explore funding options for defense. European countries have rushed to increase expenditure and maintain support for Ukraine after Trump froze US military assistance to Kyiv and raised doubts about Washington’s commitment to European allies.
“Most of the time everything is very centric in FX: whether the dollar as a whole is stronger or weaker etc.,” said Eugene Epstein, Head of Trade and Structured Products, North America, at Moneycorp in New Jersey.
“But at this time, we have many coming individual stories like in Europe, the main step in the Euro has been driven by the potential for increasing government spending and the possibility that the European central bank might be a little more hawkish than they planned.”
Traders have a price in 75 basis of cutting points from The Fed this year, LSEG data shows, with a complete price reduction with prices for June. Investors will target US inflation data on Wednesday.
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In the currency futures market, investors have cut the net dollar position to $ 15.3 billion from the highest nine years $ 35.2 billion in January.
“Reading is implied, for me it seems that Trump’s administration clearly wants a weaker dollar regardless of what they say formally or not,” Epstein added.
Data on Monday shows that regular salaries in Japan rose 3.1% in January after the 2.6% increase was revised in December and marked the biggest leap since 1992, although inflation at the highest level of two years means the real wage has fallen.
The Bank of Japan is widely expected to keep the interest rates unchanged in the policy review on March 18-19, although officials have repeatedly quoted the need to measure the sustainability of wage growth after the rise of the January central bank’s interest rates.
The Norwegian crown won the dollar and euro. That is the strongest of the dollar since October at 10,7585 crown for the US currency after the soaring inflation sowing doubts about the central bank’s plan to start cutting the loan costs in March. ,
Yuan China slipped on Monday after the data during the weekend shows the consumer price index in February dropped at the sharpest speed in 13 months.
Canadian dollars fell 0.33% versus greenback to C $ 1,4415 per dollar. Former Central Bank Mark Carney claimed the victory of a landslide on Sunday to lead the Canadian Liberal Party and became the next prime minister, snapped him for a clash with the Trump government over the trade tariff.
Source: Reuters (reporting by Chibuike Oguh in New York, Yadarisa Shabong in Bengaluru and Ankur Barerjee in Singapore; Additional Reporting by Tom Westbrook in Singapore; Editing by Bernadette Baum, Christina Fincher, William Maclean)
