The dollar struggled to recover against major currencies on Wednesday, remaining near two-week lows as markets awaited clarity on President Donald Trump’s tariff plans.
Trump said on Tuesday that his administration is considering imposing a 10% tariff on goods imported from China starting February 1. He also mentioned that Mexico and Canada could face tariffs of around 25%, though he did not provide further details.
He added that tariffs on European imports are also under discussion.
Despite these statements, the lack of specific plans led to the dollar falling by 1.2% at the beginning of the week against a basket of major currencies. On Tuesday, the dollar stabilized and closed flat after a failed rebound attempt, as US officials stated that any new taxes would be imposed cautiously.
The dollar index, which measures the greenback against six major rival currencies, fell 0.1% to 108 on Wednesday, close to a two-week low of 107.86 reached on Tuesday.
The euro remained stable at $1.0428, close to the two-week high it reached on Tuesday. The British pound fell slightly to $1.235 after reaching the highest level in a week and a half in the previous session.
The Canadian dollar settled at 1.4326 to the US dollar, after a volatile week in which it briefly fell to 1.4520, its lowest level since March 2020, under pressure from weaker inflation data.
The Mexican peso increased by about 0.19% to 20.572 to the dollar. The Chinese yuan fell slightly to 7.275 yuan per dollar in external transactions, after reaching its strongest level since December 11 at 7.2530 on Tuesday.
On Monday, Trump signed a trade memorandum, directing federal agencies to review trade issues by April 1. The dollar gained 0.13 percent to 155.715 yen, rebounding slightly from the lowest level in a month recorded the previous day.
