Currency Markets Jitter Over Trump's Trade Bluff
The dollar weakened against major currencies amid ongoing trade negotiations led by President Trump, especially with China. Despite some economic indicators bolstering the dollar, trade tensions and potential tariff impacts remain pivotal. Experts are eyeing economic data for insights into global financial health.
The U.S. dollar saw a dip against key global currencies on Wednesday as investors closely monitored President Donald Trump's tariff negotiations, particularly with China. The administration had set a deadline for countries to present trade offers coinciding with the increase in tariffs on imported steel and aluminum.
President Trump is expected to converse with Chinese President Xi Jinping, amid accusations of violating a prior agreement to ease tariffs. A ramp-up in trade tension rhetoric has kept markets vigilant, with analysts like Fiona Cincotta noting a renewed focus on the upcoming call between the two leaders.
Economic indicators have also played a role in the dollar's performance. It fell 0.8% due to manufacturing contraction, then rebounded after unexpected job opening increases. Market participants await further economic data for signs of the broader trade and financial environment.
(With inputs from agencies.)
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