The dollar eased against a variety of currencies on Thursday, as markets absorbed U.S. President Donald Trump’s latest tariff plans. Meanwhile, the yen rose to multi-week highs, driven by expectations of further interest rate hikes by the Bank of Japan.
The dollar index dropped 0.2% to 106.92, yet remained on pace for a weekly gain of 0.2%, rebounding from last week’s 1.2% decline. Conversely, the yen climbed to over a two-month high, marking a 0.8% decline for the dollar at 150.27, largely fueled by concerns over Trump’s tariffs and predictions of additional BOJ rate hikes.
Michael Pfister, a currency analyst at Commerzbank, indicated that Thursday’s dollar dip wasn’t as significant as previous declines following Trump’s January tariff announcements affecting Mexico and Canada. Meanwhile, geopolitical developments, including Trump’s criticism of Ukrainian President Zelenskiy, are drawing market attention.
(With inputs from agencies.)
