Dollar edges down as trade tensions simmer ahead of jobs data
TOKYO: The dollar drifted lower on Wednesday as the market looked ahead to U.S. employment data for immediate trading cues, while waiting on developments in President Donald Trump's tariff negotiations with key trading partners including China.
The Trump administration has given a Wednesday deadline for countries to submit their best offers on trade, the same day a doubling of duties to 50% on imported steel and aluminium comes into effect.
Trump is also tipped by the White House to have a call this week with Chinese President Xi Jinping after the two sides accused each other of violating the terms of an agreement last month to roll back some tariffs.
In the meantime, macroeconomic indicators have returned as a driver of the U.S. currency this week, even if trade frictions remain centre stage.
The dollar slumped 0.8% against major peers on Monday following a contraction in manufacturing, only to rebound by almost the same amount overnight after a surprise increase in U.S. job openings.
Early on Wednesday, the dollar was down 0.09% at 143.82 yen and the euro was up 0.13% at $1.1385.
The dollar index , which measures the currency against those two peers and four other counterparts, was flat at 99.159.
Traders will have an eye on the ADP employment report later in the day, in the run-up to crucial U.S. monthly payrolls figures on Friday.
US dollar declines as steel tariffs, China tensions hurt sentiment
'Job openings were much stronger than expected,' Commonwealth Bank of Australia analyst Joseph Capurso said of the overnight JOLTS data, which is closely watched by the Federal Reserve.
'The low estimate for ADP means the USD and U.S. bond yields have a small hurdle to climb for a positive surprise tonight.'
Elsewhere, the Australian dollar was little changed at $0.6460 ahead of the release of GDP figures.
South Korea's won strengthened about 0.2% to 1,375.25 per dollar after the victory of liberal candidate Lee Jae-myung in the country's presidential election.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Three killed, 49 wounded in intense Russian air attacks on Ukraine
KYIV: Russia launched an intense missile and drone barrage at the Ukrainian capital in the early hours of Friday and three people were killed, Ukrainian officials said, as powerful explosions reverberated across the country. The attacks followed a warning from Russian President Vladimir Putin, conveyed via U.S. President Donald Trump, that the Kremlin would hit back after Ukrainian drones destroyed several strategic bomber aircraft in attacks deep inside Russia. Kyiv's military administration said three people were killed in the attacks on Kyiv after the mayor initially put the death toll at four. The three were first responders who had rushed to the scene of one of the strikes, Interior Minister Ihor Klymenko said. 'Overnight, Russia 'responded' to its destroyed aircraft… by attacking civilians in Ukraine…. Multi-storey buildings hit. Energy infrastructure damaged,' Foreign Minister Andrii Sybiha wrote on X. President Volodymyr Zelenskiyy said 49 people nationwide had been injured in the overnight attacks, which also struck several other towns and cities as well as Kyiv, as he called on Ukraine's Western allies to ramp up pressure on Russia. The air force said Russia had used 407 drones, one of the largest numbers recorded in a single attack. Forty-five cruise and ballistic missiles were also fired, it said. Kyiv's metro transport system was disrupted by a Russian strike that hit and damaged tracks between stations, Kyiv's military administration said. The state rail company said it was also diverting some trains due to rail damage outside the city. Booming explosions Reuters witnesses reported a series of booming explosions powerful enough to rattle windows far from the impact sites. Some Kyiv residents sought shelter in metro stations, or in underground car parks. In the capital's Solomianskyi district, a Russian drone slammed into the side of an apartment building, leaving a gaping hole and burn marks, a Reuters photographer at the scene said. Falling concrete blocks from the building crushed cars parked below. Two police investigators were examining what appeared to be the drone's engine. Earlier in the night, Reuters reporters heard the sound of Russian kamikaze drones buzzing in the sky, accompanied by the sounds of outgoing fire from Ukrainian anti-aircraft fire. Zelenskiyy called for concerted pressure on Russia. 'If someone is not applying pressure and is giving the war more time to take lives – that is complicity and accountability. We must act decisively,' he wrote on X. As well as Kyiv, Russian forces also struck industrial facilities and infrastructure in the western city of Ternopil, leaving parts of it without power, mayor Serhii Nadal said. The regional administration said the attack had injured 10 people and recommended that residents temporarily stay inside due to a high concentration of toxic substances in the air after a fire. Russia launches overnight air attack on Ukraine from east to west Five people were also injured in the northwestern city of Lutsk where an attack damaged private homes, educational institutions and a government building, according to mayor Ihor Polishchuk. Ukrainian military said it had launched a pre-emptive strike overnight on the Engels and Dyagilevo airfields in the Russian regions of Saratov and Ryazan, in addition to striking at least three fuel reservoirs. In one of the most audacious attacks of the war between Ukraine and Russia, Ukrainian spies last weekend destroyed some of Russia's strategic bomber aircraft on the ground using quadrocopter drones hidden in wooden sheds. After a phone conversation with Putin on Wednesday, Trump said the Kremlin was planning an unspecified response to the Ukrainian attack on the Russian air bases.
Business Recorder
an hour ago
- Business Recorder
Swiss National Bank denies currency manipulation after being put on U.S. watch list
ZURICH: The Swiss National Bank said on Friday it would intervene in foreign currency markets where necessary to keep inflation on track after the United States added Switzerland to a list of countries being monitored for unfair currency and trade practices. The SNB denied being a currency manipulator after the publication of the U.S. Treasury Report on Thursday, but said it would continue to act in Switzerland's interests as the strong franc helped push inflation into negative terrain last month. 'The SNB does not engage in any manipulation of the Swiss franc,' it said. 'It does not seek to prevent adjustments in the balance of trade or to gain unfair competitive advantages for the Swiss economy.' The SNB said it was in contact with U.S. authorities to explain Switzerland's economic situation and monetary policy, and would continue to use interest rates and forex market interventions if necessary to pursue its inflation target of 0-2%. Swiss inflation hit a four-year low in May, with prices falling by 0.1%. The SNB declined to say whether further talks with the United States were planned, but said its monetary policy was 'geared towards the needs of Switzerland.' Switzerland met two of the U.S. Treasury's concerns regarding trade flows and its current account, but not on foreign currency interventions. SNB forex exchange purchases in 2024 were 'minimal,' Treasury said. Swiss National Bank bought forex worth 1.2 billion francs in 2024 In 2024, the SNB bought only $1 billion in foreign currencies, equivalent to only 0.1% of Swiss GDP, well below the Treasury's threshold of 2% of economic output. EFG Bank economist GianLuigi Mandruzzato said the SNB would be mindful of the Treasury report, but still pursue its mandate. 'My feeling is that there should be little reason for concern from a Swiss perspective,' he said. 'However, with the Trump administration, anything can happen.'
Express Tribune
2 hours ago
- Express Tribune
Pakistan-India conflict: Trump calls Pakistan's leadership ‘very strong'
U.S. President Donald Trump gestures, as he departs for Pennsylvania, on the South Lawn of the White House in Washington, D.C., U.S., May 30, 2025. Photo:REUTER Listen to article US President Donald Trump praised Pakistan's leadership during a meeting with German Chancellor Friedrich Merz at the White House on Thursday, marking their first bilateral discussion since Merz's election on May 6. The meeting covered a range of topics, among which was Trump's acknowledgment of Pakistan's leadership during the recent spike in tensions between India and Pakistan. These tensions reached a boiling point after a deadly attack in the Indian-Illegally Occupied Jammu and Kashmir (IIOJK) on April 22, which killed 26 people. India swiftly blamed Pakistan, but without presenting evidence. Islamabad denied the Indian claims and called for an independent probe. India the took hostile actions including the suspension of the 65-year-old Indus Waters Treaty (IWT), halting trade, and closing border crossings, as it retaliated against the alleged attack. In response, Pakistan undertook reciprocal measures, including halting trade and closing its airspace to Indian aircraft. The situation quickly escalated as missile strikes and air raids rocked both nations, resulting in dozens of casualties. Trump took credit for preventing the situation from spiraling further, stating, 'Pakistan has very strong leadership. Some people won't like when I say that, but it is what it is.' His diplomatic efforts, which involved intense talks with both sides, were credited with diffusing the immediate crisis. 'I spoke to very talented people on both sides. I said, 'We're not going to deal with you on trade if you're going to go shooting each other and whipping out nuclear weapons,'' Trump recalled, referencing the dangerous escalation that had brought the nuclear-armed neighbours to the brink of a full-scale conflict. The situation worsened on May 7, India attacked several Pakistani cities and targeted areas in Azad Jammu and Kashmir (AJK), killing civilians and destroying infrastructure. In retaliation, Pakistan's military shot down Indian warplanes, including Rafale jets, which are considered key assets of the Indian Air Force. Pakistan also neutralised waves of Israeli-made drones launched by India. On May 10, India escalated further by targeting Pakistani airbases, prompting Pakistan to launch Operation Bunyanum Marsoos, striking Indian military installations. This continued escalation brought the region to a perilous juncture before Trump intervened. Following intense diplomatic efforts, Trump announced a ceasefire on May 10, which was later confirmed by both countries' foreign ministers. Despite the ceasefire, however, a war of narratives continued to unfold. Pakistan credited Trump, along with China and Gulf states, for playing a vital role in diffusing the situation, while Indian officials downplayed foreign involvement, asserting that the truce was the result of direct bilateral talks. Trump, however, has repeatedly reiterated his stance, taking pride in his role. "I got that war stopped. Now I hope we don't go back and find out that they started it, but I don't think they will," he said. He also praised the leadership on both sides, specifically highlighting the strength of Pakistan's leadership, despite some resistance to his comments. 'They stopped that war. I was very proud of that,' he added. The president also extended his praise to Indian leadership, noting, 'The leader of India, who's a great guy, was here a few weeks ago. We had some great talks. We're doing a trade deal.'
