U.S Dollar Weakens Amidst Trade Uncertainties
The U.S. dollar weakened against other major currencies amid geopolitical concerns and trade uncertainties, fuelling negative sentiment.
The greenback faced selling pressure amidst concerns over a possible attack if the Geneva talks between the US and Iran failed to yield results.
The global FX market saw the U.S. dollar fall to a week’s low of 1.3575 against the British pound, down from yesterday’s close of 1.3559.
Global economies are weighing the US tariffs and planning appropriate responses after President Donald Trump announced a 15% tariff on global trade.
A landmark ruling by the U.S. Supreme Court voids existing tariffs, prompting investors, companies and policymakers to reassess trade impacts.
Ahead of the Geneva meeting, Trump threatened Iran in his speech, suggesting potential military action, while China warned that new investigations could end the US-China tariff truce. Gold and oil are firmer.
The dollar was sold during President Trump’s State of the Union Address. However, against most of the G10 currencies, it remains within the well-worn ranges.
Market participants are concerned that Washington’s trading partners may seek changes to trade agreements to profit from the Supreme Court’s decision.
Against the euro and the Swiss franc, the greenback slipped to 3-day lows of 1.1829 and 0.7711 from Wednesday’s closing quotes of 1.1811 and 0.7726, respectively.
If the greenback extends its downtrend, it is likely to find support around 1.21 against the euro and 0.76 against the franc.
The greenback edged down to 155.76 against the yen, from Wednesday’s closing value of 156.36. The next possible downside target for the greenback is around 152.00.
The US dollar matched the month’s high against the Canadian dollar yesterday, near CAD1.3725. It is in a narrow range of about CAD1.3675-CAD1.3705 today.
About $475 million in CAD1.37 options expire today, with the next technical target around CAD1.3760, according to forex market analysts. GTCO Climbs to N4.3trn Ahead of 2025 Earnings
