Dollar Advances as US Tariff Risks Dent Sentiment
The dollar strengthened against most Group-of-10 currencies after headlines around US tariffs on cars sapped demand for risk assets. Commodity currencies led declines.
The Bloomberg Dollar Spot Index inched up 0.1% after President Donald Trump signed a proclamation to implement a 25% tariff on auto imports. The gauge was headed for the second straight week of gains which would be the longest rising streak since January.
Risk-sensitive Australian and New Zealand dollars declined 0.2% each.
“Now that car tariffs are on, the market is getting nervous on the magnitude and breath of tariffs Liberation Day (April 2) will bring,” said Rodrigo Catril, strategist at National Australia Bank Ltd. in Sydney. “Uncertainty means flight to safety with the dollar still the preeminent safe haven, with pro growth currencies become the big losers”.
Treasury 10-year yields slipped two basis points to 4.34% as tariff risks supported the demand for haven assets
US initial jobless claims and GDP data due later on Thursday are likely to provide more clues to investors on the Federal Reserve’s interest-rate path
USD/JPY slipped 0.1% to 150.39
FX pair is turning bullish as it holds above the 150 level, even though it’s still below 200-DMA of 151.71, technical analysis shows
AUD/USD dropped 0.2% to 0.6288; NZD/USD down 0.2% to 0.5720
USD/CAD advanced 0.2% to 1.4296
EUR/USD slipped 0.1% to 1.0744
USD/MXN gained 0.7% to 20.2499
Source : Bloomberg
