Market News

By Brigid Riley and Amanda Cooper

Summary

• Dollar hovers above near 3-week low as U.S. PPI report eases inflation concerns
• Perceived room for tariff negotiations soothes trade war anxieties

TOKYO/LONDON, Feb 14 (Reuters) - The U.S. dollar stabilised around a near three-week trough on Friday as traders took solace that Washington's reciprocal tariffs were not immediately imposed, while a U.S. producer price report soothed inflation concerns.
U.S. President Donald Trump directed his economic team on Thursday to formulate plans for reciprocal tariffs on every country that imposes taxes on U.S. imports.
But he stopped short of quickly unveiling another round of tariffs, instead kicking off what could be weeks or months of investigation into other countries' levies imposed on U.S. goods.

That buoyed expectations that there may yet be room for target countries to negotiate, which helped shore up sentiment.
The dollar rallied 7% against a basket of currencies last year, as investors prepared for Trump's tariffs that threatened to fire up inflation, among other things.
Since taking office on January 20, Trump has announced tariffs on Mexico, Canada and China, but has these have been either delayed or watered down, which has dented the dollar.
The euro and the pound , which are in the firing line for reciprocal tariffs, have risen 2% and 3%, respectively, since Trump's inauguration.