- The American dollar index loses ground due to a risk of risk aversion after new tariff threats by President Donald Trump.
- Trump accused China of raping the tariff truce, while the China Ministry of Commerce replied that he had complied with the agreement.
- Trump plans to increase import tariffs on steel and 50% aluminum from 25%.
The US dollar index (DXY), which measures the value of the US dollar (USD) compared to six main currencies, is depreciating more than 0.50% and quoting about 98.80 during the European hours of Monday. Traders are looking for new clues from the publication of the purchasing managers index (PMI) ISM manufacturing ISM for May, which will be published later during the American session.
The president of the USA, Donald Trump, on Friday, accused China of raping a truce about tariffs reached earlier this month. Washington and Beijing agreed to temporarily reduce reciprocal tariffs at a meeting in Geneva. Trump said China had “totally violated his agreement with us.” The US trade representative, Jamieson Greer, also said that China had not eliminated non -tariff barriers as agreed. In response, a spokesman for the China Ministry of Commerce said Monday that China had fulfilled the agreement when canceling or suspending relevant tariff and non -tariff measures aimed at the “reciprocal tariffs” of the US.
The dollar faces challenges due to growing concerns about slow growth and renewed inflation in the United States (USA). The president of the USA, Donald Trump, said in a rally in Pennsylvania on Friday that he planned to double import tariffs on steel and aluminum to increase pressure on global steel producers and intensify the commercial war. “We are going to impose an increase of 25%. We will take it from 25% to 50% – the tariffs on steel that enters the United States of America, which will even more ensuring the steel industry in the United States,” he said, according to Reuters.
On Thursday, the US Court of Appeals for the Federal Circuit in Washington temporarily put a high to a federal court and allowed Trump’s tariffs to enter into force. On Wednesday, a panel of three judges in the International Trade Court in Manhattan arrested Trump to impose “Liberation Day” tariffs. The Federal Court found that Trump exceeded his authority by imposing broad import tariffs and declared that the executive orders issued on April 2 were illegal.
The Chamber Republicans approved Trump’s “great beautiful bill”, a package of taxes and expenses of several billion dollars, which could increase the US fiscal deficit, together with the risk that the yields of the bonds remain high for longer. This scenario generates concerns about the US economy and leads traders to sell US assets under the tendency to “sell America.” Policy experts anticipate changes in the Senate, since GOP legislators seek to finish the “great bill” for July 4.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the weakest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.65% | -0.60% | -0.70% | -0.33% | -0.68% | -0.88% | -0.71% | |
| EUR | 0.65% | 0.03% | -0.05% | 0.30% | -0.03% | -0.26% | -0.07% | |
| GBP | 0.60% | -0.03% | -0.06% | 0.27% | -0.06% | -0.30% | -0.10% | |
| JPY | 0.70% | 0.05% | 0.06% | 0.37% | 0.01% | -0.20% | -0.11% | |
| CAD | 0.33% | -0.30% | -0.27% | -0.37% | -0.34% | -0.57% | -0.37% | |
| Aud | 0.68% | 0.03% | 0.06% | -0.01% | 0.34% | -0.17% | 0.07% | |
| NZD | 0.88% | 0.26% | 0.30% | 0.20% | 0.57% | 0.17% | 0.19% | |
| CHF | 0.71% | 0.07% | 0.10% | 0.11% | 0.37% | -0.07% | -0.19% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
