US dollar slips as tariff worries resurface
The U.S. dollar slipped across the board on Monday, giving up the previous week's gains, as markets weighed the outlook for President Donald Trump's tariff policy and its potential to hurt growth and stoke inflation.
The U.S. currency fell after Trump said on Friday that he planned to double duties on imported steel and aluminum to 50% from Wednesday, and as Beijing hit back against accusations it violated an agreement on critical minerals shipments.
The dollar dropped nearly 1% to 142.60 yen, nearly wiping out its gain against the Japanese currency last week.
The euro rose 0.8% to $1.1437 - its highest since late April. Later in the week, focus will be on the European Central Bank's interest rate decision and subsequent outlook.
The dollar extended its losses on Monday after data showed U.S. manufacturing contracted for a third straight month in May and suppliers took longer to deliver inputs amid tariffs, potentially signalling looming shortages of some goods.
Earlier in the session, data showed European manufacturing took another step towards stabilisation in May, but Asian factory activity declined.
The dollar index, which measures its performance against six other major currencies, eased 0.7% and at 98.63 was just shy of the three-year low of 97.923 touched in late April.
The U.S. currency has been whipsawed for weeks by Trump's on-again-off-again trade war, and investors have been questioning the currency's safe-haven status as a flare-up in tensions stokes worries of a potential U.S. recession.
Bitcoin, the world's largest cryptocurrency by market capitalisation, was 0.6% lower on the day at $104,428.
Source: Reuters
