NEW YORK
\nThe dollar weakened on Friday ahead of a planned announcement next week by US President Donald Trump on reciprocal tariffs, which has left traders uncertain of how to trade the currency.
\n\u201cThe one word that I keep hearing over and over from clients, and on earnings calls and things, is uncertainty. And you hear this from the central bankers as well,\u201d said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
\n\u201cThe one thing we do know is that on April 2, we\u2019re going to get reciprocal tariffs. We don\u2019t know exactly what that means,\u201d Chandler said. As a result, \u201cI see the dollar broadly consolidating.\u201d
\nTraders have had bouts of optimism that the trade levies will not be as severe as feared, but concerns remain that they will dent economic growth and reignite inflation.
\nTrump on Wednesday announced a 25% tariff on imported cars and light trucks starting on April 3.
\n\u201cTrump tariff uncertainty is driving markets with investors waiting for the April 2 details,\u201d said Mohit Kumar, a senior economist at Jefferies. \u201cWe \u2026 think that the initial announcement would open the door for further negotiations and the final impact of tariffs would not be as bad as feared.\u201d
\nThe US currency dipped even after data showed that core inflation rose 0.4% in February, more than expected.
\n\u201cIt\u2019s really old news. And even though the core rate was firmer than expected, US bonds have rallied,\u201d Chandler said, noting a drop in US Treasury yields.
\nHeadline inflation was as expected, with a 0.3% rise. US consumer spending also rebounded in the month.<\/p>\n","protected":false},"excerpt":{"rendered":"
NEW YORK The dollar weakened on Friday ahead of a planned announcement next week by US President Donald Trump on reciprocal tariffs, which has left traders uncertain of how to trade the currency. \u201cThe one word that I keep hearing over and over from clients, and on earnings calls and things, is uncertainty. And you […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-469990","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n