NEW YORK/LONDON :The U.S. dollar fell against major currencies such as the euro, yen and sterling on Wednesday, as traders awaited details of U.S. President Donald Trump’s plans for tariffs, which could upend the global trading system and shake financial markets.
The euro last bought at $1.0825, up 0.3 per cent against the dollar, while sterling edged up 0.1 per cent to $1.2940 ahead of a White House Rose Garden announcement scheduled for 2000 GMT that will likely see the imposition of steep new duties on U.S. imports.
Trump has for weeks trumpeted April 2 as “Liberation Day”, and White House spokeswoman Karoline Leavitt said reciprocal tariffs on countries that impose duties on U.S. goods would take effect immediately after Trump’s announcement.
“The dollar is starting ‘Liberation Day’ off on the back foot, and it’s probable that markets are anticipating yet another last-second walkback of tariffs,” said Helen Given, director of trading, at Monex USA in Washington.
“The White House and Trump’s rhetoric on what tariffs will be levied this afternoon have been a bit at odds with each other, so traders are moving very cautiously ahead of this afternoon.”
Against the yen, the dollar was little changed at 149.53 as investors moved modestly into the safe-haven Japanese currency.
The Australian dollar was up 0.3 per cent at US$0.6296, potentially boosted by investors seeking out currencies that are less exposed to tariffs.
Details about the size and scope of the trade barriers set to come into force remain unknown, but the Washington Post reported that Trump’s aides were considering a plan that would raise duties on products by about 20 per cent from nearly every country, rather than targeting certain countries or products.
“A wide blanket tariff globally capturing all the major trading partners with a 20 per cent-25 per cent tariff would be seen as most aggressive and likely elicit the biggest risk-off reaction,” said Derek Halpenny, head of research at MUFG.
“But there has been speculation that discussions on trade deals could exclude certain countries … and the more examples of that, the better the markets can take the announcements,” he said, citing Britain as one country that may get a carve-out.
Worries about the impact of an escalating global trade war on the world’s largest economy and a slew of weaker-than-expected U.S. data have stoked recession fears and in turn undermined the dollar this year.
Given nervousness about the tariff announcement, the dollar reacted little to data showing U.S. private payrolls increased more than expected in March. Private payrolls rose by 155,000 last month after an upwardly revised 84,000 rise in February, according to the ADP National Employment Report
Economists polled by Reuters had forecast private employment advancing 115,000 following a previously reported 77,000 gain in February.
The dollar slid 0.2 per cent against a basket of currencies to 103.98. That comes after the greenback dropped 3.1 per cent in March, its worst monthly performance since November 2022.
Data on Tuesday showed U.S. manufacturing contracted in March, while a measure of inflation at the factory gate jumped to the highest level in nearly three years amid rising anxiety over import tariffs.
“While a 20 per cent blanket tariff rate would be theoretically seen as a net positive for the U.S. dollar, the market is most intently focused on whether tariffs accelerate the stagflation risk in the U.S. economy,” said Chris Weston, head of research at Pepperstone.
Elsewhere, the greenback was up 0.2 per cent versus the Canadian dollar at C$1.4328, rising 0.3 per cent against the Mexican peso to 20.406 pesos.
Canadian Prime Minister Mark Carney spoke with Mexican President Claudia Sheinbaum on Tuesday about Canada’s plan to “fight unjustified trade actions” by the United States, the prime minister’s office said.
Bank of Japan Governor Kazuo Ueda meanwhile said on Wednesday that planned new U.S. tariffs could have a huge impact on world trade, warning of a possible hit to global growth.
Currency
bid
prices at
2 April
02:16
p.m. GMT
Descripti RIC Last U.S. Pct YTD Pct High Low
on Close Change Bid Bid
Previous
Session
Dollar 103.99 104.2 -0.18 per cent -4.15 per cent 104.31 103.
index 93
Euro/Doll 1.0823 1.0793 0.29 per cent 4.55 per cent $1.083 $1.0
ar 78
Dollar/Ye 149.58 149.62 -0.01 per cent -4.92 per cent 149.915 149.
n 17
Euro/Yen 161.87 161.44 0.27 per cent -0.83 per cent 162.05 161.
12
Dollar/Sw 0.8831 0.8836 -0.06 per cent -2.7 per cent 0.8848 0.88
iss 23
Sterling/ 1.2937 1.2923 0.12 per cent 3.45 per cent $1.295 $1.2
Dollar 901
Dollar/Ca 1.4329 1.4304 0.18 per cent -0.35 per cent 1.4335 1.42
nadian 89
Aussie/Do 0.6294 0.6279 0.29 per cent 1.76 per cent $0.6314 $0.6
llar 274
Euro/Swis 0.9556 0.9536 0.21 per cent 1.74 per cent 0.9562 0.95
s 35
Euro/Ster 0.8362 0.8348 0.19 per cent 1.08 per cent 0.8368 0.83
ling 42
NZ 0.5735 0.5701 0.68 per cent 2.58 per cent $0.5747 0.57
Dollar/Do 03
llar
Dollar/No 10.4236 10.4332 -0.09 per cent -8.29 per cent 10.4725 10.4
rway 153
Euro/Norw 11.2818 11.2929 -0.1 per cent -4.14 per cent 11.3146 11.2
ay 65
Dollar/Sw 9.9327 10.0099 -0.77 per cent -9.8 per cent 10.021 9.91
eden 52
Euro/Swed 10.7544 10.804 -0.46 per cent -6.21 per cent 10.8181 10.7
en 317
