Dollar strong as Trump imposes new tariff rates; yen slide spurs govt warning
The dollar headed for its best week in almost three years against its major peers, maintaining momentum on Friday after U.S. President Donald Trump imposed new tariff rates on dozens of trade partners.
The dollar also gained on non-tariff catalysts, with the yen touching a four-month low, extending a steep decline from Thursday after the Bank of Japan signalled it was in no hurry to resume interest rate hikes.
That prompted Japanese Finance Minister Katsunobu Kato to say on Friday that officials are "alarmed" by currency moves. The yen last changed hands at 150.725 per dollar after earlier dipping to 150.915 per dollar, its weakest since March 28.
The U.S. dollar index - which measures the currency against a basket of six major peers including the euro, yen, Swiss franc and Canada's dollar - is on course to rise 2.5% this week, its best weekly performance since a 3.1% rally in September of 2022.
On Friday, it rose 0.1% to 100.14, the highest since May 29.
Some countries fared much worse than others in tariff rates, hitting their currencies.
Canada received a 35% levy instead of an earlier threatened 25%, pushing the loonie down 0.12% to C$1.3872, its lowest since May 22 versus its U.S. peer.
The Swiss franc eased as much as 0.26% to 0.8120 per dollar after Trump set a 39% duty on Swiss imports, up from the 31% he previously mooted.
Among Asian currencies, the Philippine peso slumped to its weakest level in six months, while Taiwan's dollar hit its lowest since early June. South Korea, which got its trade deal late Wednesday, also saw the won swept up in the declines, with the currency falling to levels last seen in mid-May.
The euro remained pinned near an almost two-month low around $1.1412, as it continues to be weighed down by what markets see as a lopsided trade agreement with Washington. That wasn't far from Wednesday's low of $1.1401, a level not seen since June 10.
Source: Reuters
