Market News
Dollar resumes fall as investors wait on trade talks - REUTERS
Summary
- Yen climbs into U.S.-Japan trade talks
- Swiss franc continues to post gains on dollar
- Fed's Powell to speak later on Wednesday
NEW YORK, April 16 (Reuters) - The dollar resumed its fall on Wednesday with both safe havens and risk sensitive currencies outperforming the greenback as traders waited to see if U.S. President Donald Trump’s administration reaches new trading agreements with partners.
The dollar tumbled last week on concerns over the economic impact new tariffs will have, and as investors shifted allocations overseas due to uncertainty over the erratic implementation of the trade levies.
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The United States is in discussions with countries including Japan, while tensions between China and the U.S. are intensifying.
“We're in a little bit of an information vacuum now with this stalemate between China and the U.S and we're waiting to see what deals get struck with other countries,” said Brad Bechtel, global head of FX at Jefferies in New York.
“There's some big countries that could potentially be announcing deals, which then puts a framework around what the U.S. administration at least is trying to do with tariffs,” Bechtel said.
Japan is set to begin tariff negotiations with the United States in Washington on Wednesday. South Korean Finance Minister Choi Sang-mok will also hold a meeting with U.S. Treasury Secretary Scott Bessent next week to discuss trade issues.
U.S. Vince President JD Vance said on Tuesday there is a good chance that the United States and Britain will strike a "great agreement" on trade.
Any trade agreements with China and the European Union meanwhile are expected to take longer to reach.
Trump on Tuesday ordered a probe into po
tential new tariffs on all U.S. critical mineral imports in an attempt to pressure industry leader China.
U.S. data on Wednesday showed that U.S. retail sales surged in March as households boosted purchases of motor vehicles ahead of tariffs. Federal Reserve Chair Jerome Powell is due to speak later on Wednesday.
The euro was last up 0.77% on the day at $1.1368, holding below a three-year high of $1.1473 reached on Friday.
The dollar weakened 0.53% to 142.47 Japanese yen and earlier reached 142.03, slipping slightly below Friday's low to reach the lowest exchange rate since September 30.
