Dollar Edges Higher as Trump Vows No Tariff Delay
The dollar rose against all Group-of-10 peers after President Donald Trump vowed to push forward with his aggressive tariff regime, stressing he would not offer additional extensions on country-specific levies set to hit in early August.
The Bloomberg Dollar Spot Index gained 0.1%.
The dollar-yen rate rose with Treasury yields after being sold off into the Tokyo fixing, according to a trader.
Trump also said he would impose a 50% rate on copper products being sent into the US and drug companies could face a tax as high as 200% on imports if they didn’t move production to the US in the next year.
New Zealand’s dollar rose briefly after the central bank left rates unchanged at 3.25% but flagged that inflation would rise toward the top of its 1-3% target later this year. The gain was reversed as the bank also said that a rate cut was discussed.
“The prospect of more tariff-related headlines coming out over the period ahead could give the USD index some additional near-term support,” said Peter Dragicevich, currency strategist at Corpay, wrote in a note. “That said, we remain of the view that the prospect of weaker US growth stemming from heightened uncertainty and higher import costs faced by businesses/consumers, outlook for a weaker jobs market and lower US interest rates, and/or reduced capital inflows into the US could see the USD steadily weaken over the medium-term”.
USD/JPY gained 0.4% to 147.13.
NZD/USD eased 0.3% to 0.5979; touched 0.6014 shortly after the RBNZ decision.
Source : Bloomberg
