Dollar set for weekly loss on Ukraine peace talks, tariffs delay; euro in demand
The US dollar fell Friday, on track for a hefty weekly loss in the wake of hot inflation data and after President Donald Trump delayed imposing reciprocal tariffs on major U.S. trading partners.
At 04:00 ET (09:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.4% lower to 106.815, dropping to a three-week low and on course for a loss of around 1% this week.
Dollar retreats on tariffs delay
President Trump directed officials on Thursday to formulate plans for reciprocal tariffs on every country that imposes taxes on U.S. imports, but stopped short of immediately announcing tariffs.
This raised expectations that there may yet be room for countries to negotiate, weighing on the U.S. currency as traders have generally seen the imposition of tariffs as being dollar-positive.
In Europe, EUR/USD traded 0.2% higher to 1.0484, with the euro trading around its highest level in two weeks against the dollar, supported by optimism around potential peace talks between Ukraine and Russia.
GBP/USD rose 0.3% to 1.2587, with the U.K. currency climbing to its highest level since early January, in the wake of data showing the U.K. economy unexpectedly grew in the final quarter of last year.
In Asia, USD/JPY dropped 0.2% to 152.52, with the Japanese currency retaining recent strength, amid persistent bets on more rate hikes by the Bank of Japan.
Source: Investing.com
