By Ray Wee
SINGAPORE (Reuters) – After President Donald Trump said tariffs in Mexico and Canada went as planned, it fell to a low in more than two months at the beginning of the week, supported by a safe haven flow. The dollar rose on Tuesday.
The stronger dollar leaves the euro at $1.0461 at a month's high, with the future profits of the single currency depend on how quickly a Union government will be formed in Germany after the country's conservative election victory There is a high possibility that it will happen.
Trump said on Monday that tariffs on Canada and Mexico's imports were “as planned within the deadline, despite efforts to strengthen border security and halt fentanyl flow to the US ahead of the March 4 deadline. “He said.
Many say that the top two US trading partners will persuade the Trump administration to further delay tariffs applied to more than $918 billion in US imports from both countries, from cars to energy. I was hoping for it.
His comments spurred rushes to safe assets like gold and the US Treasury, and the dollar was also a beneficiary of some of those risk-offs.
Sterling drifted from the two-month height on Monday, with the Australians falling 0.06% lower at $1.2618 in the final Asian session, with the Australian falling 0.17% to $0.6339.
The New Zealand dollar fell 0.13% to $0.5725, but the dollar index stabilized at 106.75, rebounding from a trough that had more than two months of hits in the previous session.
The dollar fell about 3% from its January peak after a weaker than expected US economic data raft that sparked concerns about growth outlook, but sustained losses are short-lived due to tariff concerns did.
“Since last week or two weeks, the next economic news from the US is really playing with this story that the US is losing its economic exceptionalism. But it's a reasonable risk-off tone in the stock market. Every time I see it…Ray Atrill, head of Forex Strategy at the Dollar National Bank of Australia, said:
“So I think we're seeing a bit of interaction between these forces… towards these important tariff deadlines, it's difficult to see a significant recovery in risk sentiment…and that It intends to maintain defensive support from the US dollar, Attlill added.
Elsewhere, the dollar rose 0.35% against the yen to 150.22, recovering from the decline since early December against the Japanese currency on Monday.
In particular, in effect, the recent decline in US Treasury yields has put a strain on the dollar against the yen as Japanese yields rise on estimates of another rate hike from the Bank of Japan (BOJ).
(Reporting by Rae Wee, Editing by Himani Sarkar)
