Market News
Dollar slips on growth fears before next tariff announcement - REUTERS
Summary
- Core inflation hotter than expected in February
- Dollar weaker against euro and yen
- Reciprocal tariff announcement next week major market focus
NEW YORK, March 28 (Reuters) - The dollar weakened on Friday on growth concerns ahead of a planned announcement next week by U.S. President Donald Trump on reciprocal tariffs, with the Japanese yen benefiting from safe haven flows as stocks tumbled and Treasury yields fell.
Traders 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.
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The lack of clarity over what tariffs exactly will be implemented has added to investor caution.
“The 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,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
“The one thing we do know is that on April 2, we're going to get reciprocal tariffs. We don't know exactly what that means,” Chandler said.
Trump on Wednesday announced a 25% tariff on imported cars and light trucks starting on April 3.
"We see balanced risks going into next week's deadline. We believe tariffs on selective products are already what markets expect. Ac
