Latest news with #dollar
Reuters
9 hours ago
- Business
- Reuters
Dollar holds losses after Trump announces Japan trade deal, yen wobbles
TOKYO, July 23 (Reuters) - The dollar struggled on Wednesday, while the yen was choppy after U.S. President Donald Trump announced a trade deal with Japan, bolstering optimism for more agreements ahead of an impending tariff deadline. The U.S. currency has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, only to delay and suspend most of the duties as his administration sought bilateral trade deals. The yen hit its strongest level since July 11 at 146.20 per dollar on the trade news but flipped to losses after a report that Japanese Prime Minister Shigeru Ishiba intends to step down next month. It last fetched 146.92. In a post on Truth Social, Trump said that a tariff rate of 15% was set on imports from Japan, down from the 25% rate that was expected to take effect from August 1, and added the Asian nation will invest $550 billion in the United States. "Dollar softness seems to be our opening proposition," said Michael McCarthy, Market Strategist at Moomoo Australia. "Clearly, there's some dovishness infecting the market at the moment around the U.S. dollar and we're seeing that in the bond markets too." The dollar index , which tracks the greenback against major peers, was at 97.48 after a three-day decline, hovering near its lowest level since July 10. The gauge has lost 6.6% since Trump's "Liberation Day" tariff announcement on April 2. U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than the timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. Japan's all-important auto industry and rice imports were sticking points in protracted trade talks with the U.S. In his post on Truth Social, Trump said Japan would open to trade for U.S. cars, trucks, rice and certain agricultural products, among other items. Ishiba told reporters in Tokyo that the deal would set a 15% tariff on imports of Japanese vehicles. Ishiba, whose ruling coalition lost its majority in upper house elections on Sunday, will announce his resignation by the end of next month, Japanese media reported on Wednesday. The trade deal with Japan could pave the way for more deals, including with Europe. Trump said negotiators from the European Union would be in Washington on Wednesday. The news boosted the Australian and New Zealand dollars, although sentiment remained cautious. The Aussie firmed 0.19% to $0.6568, while the kiwi gained 0.25% to $0.60175. Sterling was little changed at $1.3527 . The euro stood at $1.1737 , down 0.15% but still near a four-year high it touched at the start of the month. The single currency has surged over 13% this year as investors looked for alternatives to U.S. assets. The European Central Bank is expected to hold rates steady on Thursday after eight consecutive rate cuts, with the prospect of steeper-than-expected U.S. tariffs looming. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. Bessent on Monday took a softer stance, saying there is no need for Powell to step down immediately, adding that he should see through the end of his term in May if he wants.
CNA
10 hours ago
- Business
- CNA
Dollar holds losses after Trump announces Japan trade deal, yen wobbles
TOKYO :The dollar struggled on Wednesday, while the yen was choppy after U.S. President Donald Trump announced a trade deal with Japan, bolstering optimism for more agreements ahead of an impending tariff deadline. The U.S. currency has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, only to delay and suspend most of the duties as his administration sought bilateral trade deals. The yen hit its strongest level since July 11 at 146.20 per dollar on the trade news but flipped to losses after a report that Japanese Prime Minister Shigeru Ishiba intends to step down next month. It last fetched 146.92. In a post on Truth Social, Trump said that a tariff rate of 15 per cent was set on imports from Japan, down from the 25 per cent rate that was expected to take effect from August 1, and added the Asian nation will invest $550 billion in the United States. "Dollar softness seems to be our opening proposition," said Michael McCarthy, Market Strategist at Moomoo Australia. "Clearly, there's some dovishness infecting the market at the moment around the U.S. dollar and we're seeing that in the bond markets too." The dollar index, which tracks the greenback against major peers, was at 97.48 after a three-day decline, hovering near its lowest level since July 10. The gauge has lost 6.6 per cent since Trump's "Liberation Day" tariff announcement on April 2. U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than the timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. Japan's all-important auto industry and rice imports were sticking points in protracted trade talks with the U.S. In his post on Truth Social, Trump said Japan would open to trade for U.S. cars, trucks, rice and certain agricultural products, among other items. Ishiba told reporters in Tokyo that the deal would set a 15 per cent tariff on imports of Japanese vehicles. Ishiba, whose ruling coalition lost its majority in upper house elections on Sunday, will announce his resignation by the end of next month, Japanese media reported on Wednesday. The trade deal with Japan could pave the way for more deals, including with Europe. Trump said negotiators from the European Union would be in Washington on Wednesday. The news boosted the Australian and New Zealand dollars, although sentiment remained cautious. The Aussie firmed 0.19 per cent to $0.6568, while the kiwi gained 0.25 per cent to $0.60175. Sterling was little changed at $1.3527. The euro stood at $1.1737 , down 0.15 per cent but still near a four-year high it touched at the start of the month. The single currency has surged over 13 per cent this year as investors looked for alternatives to U.S. assets. The European Central Bank is expected to hold rates steady on Thursday after eight consecutive rate cuts, with the prospect of steeper-than-expected U.S. tariffs looming. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. Bessent on Monday took a softer stance, saying there is no need for Powell to step down immediately, adding that he should see through the end of his term in May if he wants.
Zawya
11 hours ago
- Business
- Zawya
Dollar holds losses after Trump announces Japan trade deal
TOKYO: The dollar stayed weak on Wednesday, having lost ground overnight, after U.S. President Donald Trump announced a trade deal with Japan ahead of an impending tariff deadline. The U.S. currency has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, only to delay and suspend most of the duties as his administration sought bilateral trade deals. The yen flipped to losses on the day after a report that Japanese Prime Minister Shigeru Ishiba intends to step down next month. In a post on Truth Social, Trump said that a tariff rate of 15% was set on imports from Japan, down from the 25% rate that was expected to take effect from August 1, and added the Asian nation will invest $550 billion in the United States. "Dollar softness seems to be our opening proposition," said Michael McCarthy, Market Strategist at Moomoo Australia. "Clearly there's some dovishness infecting the market at the moment around the U.S. dollar and we're seeing that in the bond markets too." The dollar traded at 146.90 yen, up 0.2% after having slid 0.5% in the previous session. The dollar index, which tracks the greenback against major peers, was little changed at 97.48 after a three-day decline. The gauge has lost 6.6% since Trump's "Liberation Day" tariff announcement on April 2. U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than the timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. Japan's all-important auto industry and rice imports were sticking points in protracted trade talks with the U.S. In his post on Truth Social, Trump said Japan would open to trade for U.S. cars, trucks, rice and certain agricultural products, among other items. Ishiba told reporters in Tokyo that the deal would set a 15% tariff on imports of Japanese vehicles. Ishiba, whose ruling coalition lost its majority in upper house elections on Sunday, has made up his mind to announce his resignation by the end of August, the Mainichi newspaper reported. The euro stood at $1.1736, down 0.2%. Sterling was little changed at $1.35180, off 0.1%. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. Bessent on Monday took a softer stance, saying there is no need for Powell to step down immediately, adding that he should see through the end of his term in May if he wants.
Reuters
12 hours ago
- Business
- Reuters
Dollar holds losses after Trump announces Japan trade deal
TOKYO, July 23 (Reuters) - The dollar stayed weak on Wednesday, having lost ground overnight, after U.S. President Donald Trump announced a trade deal with Japan ahead of an impending tariff deadline. The U.S. currency has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, only to delay and suspend most of the duties as his administration sought bilateral trade deals. The yen flipped to losses on the day after a report that Japanese Prime Minister Shigeru Ishiba intends to step down next month. In a post on Truth Social, Trump said that a tariff rate of 15% was set on imports from Japan, down from the 25% rate that was expected to take effect from August 1, and added the Asian nation will invest $550 billion in the United States. "Dollar softness seems to be our opening proposition," said Michael McCarthy, Market Strategist at Moomoo Australia. "Clearly there's some dovishness infecting the market at the moment around the U.S. dollar and we're seeing that in the bond markets too." The dollar traded at 146.90 yen , up 0.2% after having slid 0.5% in the previous session. The dollar index , which tracks the greenback against major peers, was little changed at 97.48 after a three-day decline. The gauge has lost 6.6% since Trump's "Liberation Day" tariff announcement on April 2. U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than the timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. Japan's all-important auto industry and rice imports were sticking points in protracted trade talks with the U.S. In his post on Truth Social, Trump said Japan would open to trade for U.S. cars, trucks, rice and certain agricultural products, among other items. Ishiba told reporters in Tokyo that the deal would set a 15% tariff on imports of Japanese vehicles. Ishiba, whose ruling coalition lost its majority in upper house elections on Sunday, has made up his mind to announce his resignation by the end of August, the Mainichi newspaper reported. The euro stood at $1.1736 , down 0.2%. Sterling was little changed at $1.35180 , off 0.1%. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. Bessent on Monday took a softer stance, saying there is no need for Powell to step down immediately, adding that he should see through the end of his term in May if he wants.
CNA
12 hours ago
- Business
- CNA
Dollar holds losses after Trump announces Japan trade deal
TOKYO :The dollar stayed weak on Wednesday, having lost ground overnight, after U.S. President Donald Trump announced a trade deal with Japan ahead of an impending tariff deadline. The U.S. currency has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, only to delay and suspend most of the duties as his administration sought bilateral trade deals. The yen flipped to losses on the day after a report that Japanese Prime Minister Shigeru Ishiba intends to step down next month. In a post on Truth Social, Trump said that a tariff rate of 15 per cent was set on imports from Japan, down from the 25 per cent rate that was expected to take effect from August 1, and added the Asian nation will invest $550 billion in the United States. "Dollar softness seems to be our opening proposition," said Michael McCarthy, Market Strategist at Moomoo Australia. "Clearly there's some dovishness infecting the market at the moment around the U.S. dollar and we're seeing that in the bond markets too." The dollar traded at 146.90 yen, up 0.2 per cent after having slid 0.5 per cent in the previous session. The dollar index, which tracks the greenback against major peers, was little changed at 97.48 after a three-day decline. The gauge has lost 6.6 per cent since Trump's "Liberation Day" tariff announcement on April 2. U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than the timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. Japan's all-important auto industry and rice imports were sticking points in protracted trade talks with the U.S. In his post on Truth Social, Trump said Japan would open to trade for U.S. cars, trucks, rice and certain agricultural products, among other items. Ishiba told reporters in Tokyo that the deal would set a 15 per cent tariff on imports of Japanese vehicles. Ishiba, whose ruling coalition lost its majority in upper house elections on Sunday, has made up his mind to announce his resignation by the end of August, the Mainichi newspaper reported. The euro stood at $1.1736, down 0.2 per cent. Sterling was little changed at $1.35180, off 0.1 per cent. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. Bessent on Monday took a softer stance, saying there is no need for Powell to step down immediately, adding that he should see through the end of his term in May if he wants.
