Dollar Trims Week’s Gain After SCOTUS Tariff Ruling
The dollar fell after the Supreme Court ruled President Donald Trump exceeded his authority when he imposed sweeping global tariffs against most US trading partners. Earlier, the greenback had steadied following a series of US data releases, including personal consumption expenditure.
The Bloomberg Dollar Spot Index was down 0.1% after the Supreme Court ruled that Trump exceeded his authority by imposing broad tariffs, trimming the week’s gain.
“Knee-jerk reaction to the Supreme Court decision sees the USD lower and duration under a bit of pressure,” said Bipan Rai of BMO Asset Management Inc. “We don’t see this as a dramatic shift over the long-term as the White House is likely to look at other measures as an offset to revenue loss”.
Trump spoke against the Supreme Court’s ruling in a press conference Friday afternoon and pledged to find alternative methods to implement his tariff program.
Concerns about rising tensions between the US and Iran have also underpinned haven demand for the greenback.
GDP data came in below expectations, hampered by the record-long government shutdown.
Treasuries fell, with 10-year yield up 2bps to 4.09.
USD/JPY up 0.1% to 155.15
USD/MXN down 0.7% to 17.1411
EUR/USD up 0.1% to 1.1779
The euro rebounded from day lows after data showed private-sector activity in the euro area surpassed expectations as manufacturers recorded their best performance since 2022 thanks to surprise growth in Germany.
AUD/USD rises 0.3% to 0.7078
NZD/USD down little changed at 0.5971
New Zealand’s dollar slipped earlier after central bank Governor Anna Breman said the economy has room to recover this year without generating excessive inflation, a signal that RBNZ may not need to tighten policy further.
USD/CAD inches up 0.1% to 1.3688
Source ; Bloomberg.com
