Dollar firms on tariff threats, stocks shrug and post gains
The dollar edged higher on Monday after U.S. President Donald Trump warned more tariffs were imminent including on steel and aluminium, although U.S. futures and European stocks shrugged off the looming levies and rose.
Speaking to reporters on Air Force One, Trump said he would announce on Monday 25% tariffs on all steel and aluminium imports into the U.S., and reveal other reciprocal tariffs on Tuesday or Wednesday.
China's retaliatory tariffs on some U.S. exports take effect on Monday, with no sign as yet of progress between Beijing and Washington.
Investors reacted by pushing the dollar slightly higher, with the index tracking the U.S. currency up just over 0.1% from Friday's close, at 108.17.
It climbed 0.59% against Japan's yen, which had its best week since November last week as investors bet on more Bank of Japan rate hikes. The euro was flat at $1.0329.
The dollar rose against the currencies of commodity-exporting countries before moderating. The Canadian dollar was last around 0.2% lower.
Source: Reuters
