Dollar recoups losses on renewed tariff worries
The dollar edged up slightly on Tuesday after falling to its lowest in more than two months at the start of the week, buoyed by safe-haven flows after U.S. President Donald Trump said tariffs on Mexico and Canada would proceed as planned.
The firmer dollar in turn left the euro off a one-month high at $1.0476, with future gains in the single currency likely to hinge on how soon a coalition government can be formed in Germany following the election victory of the country's conservatives.
Sterling drifted from Monday's two-month high and last fetched $1.26385. The Aussie ticked up 0.07% to $0.6354, but was some distance away from a 2-1/2-month high hit last week.
The dollar index steadied at 106.59, rebounding from a more than two-month trough of 106.12 hit in the previous session.
While the dollar has fallen some 3% from its January peak following a raft of weaker-than-expected U.S. economic data that stoked worries over its growth outlook, sustained losses have been short lived due to lingering concerns over tariffs.
Elsewhere, the dollar rose 0.05% against the yen to 149.75, recovering from a fall to its weakest level since early December against the Japanese currency on Monday.
The recent fall in U.S. Treasury yields, particularly in real terms, has weighed on the dollar against the yen as Japanese yields rise on speculation of another rate hike from the Bank of Japan (BOJ).
The New Zealand dollar gained 0.08% to $0.5737, reversing some of its declines from earlier in the session.
Source: Reuters
