Dollar Climbs on Tariffs, Loonie Hits 2003 Low
The dollar climbed against its Group-of-10 peers after US President Donald Trump imposed tariffs on three of the nation’s largest trading partners.
USD/CAD rose as much as 1.6% to 1.477, its highest level since April 2003; Bloomberg dollar spot index up 1.2%.
“The market needs to structurally and significantly reprice the trade war risk premium” with the announcements at the weekend roughly three times larger than what was envisaged, George Saravelos, head of FX research at Deutsche Bank, writes in note.
“For Canada and Mexico, we see this trade shock — if sustained — as being far larger in economic magnitude than that of Brexit on the UK and would expect both countries to enter a recession in coming weeks”.
EUR/USD falls 1.3% to 1.0227; the pair dropped as much as 2.1% to 1.0141 earlier Monday, its lowest point since Nov. 2022.
USD/JPY up as much as 0.5% to 155.89.
AUD/USD slumps 2.1% to 0.6090.
GBP/USD drops 1.1% to 1.2265.
Source : Bloomberg
