The dollar’s decline in tariff news is unlikely to continue
Lee Hardman, an analyst at MUFG Bank, said the decline on Friday is unlikely to be sustained as tariff uncertainties remain.
The US currency has reached a two-month low for a basket of currencies on relief that President Trump’s mutual tariff plans will not be implemented until at least April. However, mutual tariffs are based not only on duties imposed by other countries on US imports, but also on other factors such as VAT, exchange rates, and regulations.
“Now that non-tariff factors are included, we are more wary of more destructive outcomes,” Hardman said. Uncertainty in trade policy should remain supportive for the dollar, he added.