Dollar Mostly Softer As Tariffs Implemented

2025-03-04 06:53:00 ET

Summary

• The postponed US tariffs on Canada and Mexico have gone forward and China faces its second 10% tariff increase in two months.
• The Swiss franc and Japanese yen are the strongest of the G10 currencies, up around 0.45%-0.60% in late European morning turnover, but the Canadian dollar is no slouch and is up about 0.35%.
• Yesterday's losses saw the Dollar Index surrender more than half of the gains scored in the second half of last week.

Overview

The postponed US tariffs on Canada and Mexico have gone forward and China faces its second 10% tariff increase in two months. The dollar is mixed. The Swiss franc and Japanese yen are the strongest of the G10 currencies, up around 0.45%-0.60% in late European morning turnover, but the Canadian dollar is no slouch and is up about 0.35%. Canada (and China) have announced what are seen as mild initial retaliatory measures, while Mexico is expected to make an announcement later day. The euro tested its recent highs near $1.0530. Japan's Prime Minister Ishiba denied US claims that it was seeking trade advantage in the currency market. Most emerging market currencies are firmer, including the Chinese yuan. The Mexican peso led the emerging market currencies lower yesterday and is the weakest today, off about 0.8%....

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