Currency Jitters: Global Trade Tensions Boost U.S. Dollar
The U.S. dollar surged following President Trump’s announcement of increased tariffs on global trade partners. Notable movements included a 35% tariff on Canadian imports and potential tariffs on EU goods. This prompted a decline in several international currencies, with markets closely monitoring trade developments.
The U.S. dollar experienced an uptick on Friday as new challenges emerged in the global trade landscape, spurred by President Donald Trump's latest tariff announcements. Trump has signaled plans to impose widespread levies ranging from 15% to 20% on most trade partners.
During the Asian trading session, currencies mostly maintained narrow ranges, but the dollar later appreciated due to Trump's comments, which increased uncertainty over his trade policies. The Canadian dollar took a substantial hit, dropping over 0.5% to 1.3726 per U.S. dollar after Trump declared a 35% tariff on Canadian imports set to begin August 1.
Further tension loomed as Trump hinted at potential tariff communications with the European Union, complicating ongoing trade negotiations. As a result, the euro dipped 0.25% to $1.1671, marking a nearly 1% weekly decline. Other currencies, such as the Australian dollar, also saw downturns in response to the market's apprehension over potential escalations in trade disputes.
(With inputs from agencies.)
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