Dollar Strengthens as Traders Weigh Delay in U.S. Tariffs
The dollar was steady amid a delay in the imposition of reciprocal U.S. tariffs. The euro weakened ahead of regional growth data.
The Bloomberg Dollar Spot Index was little changed after falling to its lowest since Dec. 18 earlier. That was amid signs that reciprocal U.S. tariffs may come into effect within weeks and negotiations to end the war in Ukraine
“Relief that reciprocal tariffs are not imminent, ongoing political momentum toward a Ukraine ceasefire, alongside reassuring details in a hotter U.S. January PPI have weakened the dollar,” Richard Franulovich, head of FX strategy at Westpac Banking Corp. wrote in a note to clients
“We are not inclined to be overly negative on the dollar”
The delayed timing provides only short-term certainty and the Federal Reserve is likely to remove the remaining two cuts from its 2025 median forecast
USD/JPY fell 0.1% to 152.62
EUR/USD fell 0.1% to 1.04530 after rising for the past three days
Eurozone fourth-quarter growth is expected to be flat q/q, and steady at 0.9% y/y, according to a Bloomberg survey
AUD/USD steady at 0.6319
NZD/USD up 0.1% to 0.5684
New Zealand manufacturing expands for first time in nearly two years
GBP/USD edged down 0.1% to 1.2553
Source: Bloomberg
