US dollar weakens against peers as markets weight renewed trade tensions
The dollar lost ground against major peers including the Swiss franc and Japanese yen on Tuesday as U.S.-China trade tensions resurged, while the euro firmed after the French government proposed suspending a landmark pension reform.
The dollar weakened 0.37% to 0.801 Swiss franc and eased 0.37% to 151.71 yen <JPY=>, a day after rising against both currencies.
"The market got caught a little bit yesterday," said Marc Chandler, chief market strategist at Bannockburn Capital Markets. "People wanted to believe that the U.S.-China trade tensions had de-escalated. But it's clear that they have not."
The U.S. and China on Tuesday began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil.
In addition, Beijing announced countermeasures against five U.S.-linked subsidiaries of South Korean shipbuilding firm Hanwha Ocean. China also said it was investigating how its domestic shipping industry might be affected by a U.S. Section 301 probe into allegedly unfair trade practices by foreign countries.
The tit-for-tat measures undermined what appeared to be a conciliatory tone from U.S. President Donald Trump at the weekend that had helped fuel some optimism at the start of this week.
French Prime Minister Sebastien Lecornu suspended a landmark 2023 pension reform until after the 2027 presidential election, bowing to pressure from leftist lawmakers who had demanded such a move to ensure his political survival.
The euro extended gains against the dollar following the announcement. It was up 0.33% at $1.1606.
Britain's pound was off 0.05% on the dollar at $1.3326 after data showed British pay growth slowing and jobless claims ticking higher.
The pound was also softer against the euro , with the common currency up 0.37% at 87.08 pence.
The Australian dollar , often used as a liquid proxy for Chinese assets and broader risk sentiment given the two countries' close economic links, shed 0.32% to 0.6491. The New Zealand dollar fell 0.16% to $0.5716.
Elsewhere, cryptocurrencies were lower, with bitcoin dropping 2.02% to $113,460.16. Ethereum declined 3.59% to $4,135.78.
Source: Reuters
