The euro made a recovery from a three-week low as U.S. President Donald Trump prepares to implement a 25% tariff on imported cars and light trucks, escalating global trade tensions. While the currency market showed muted reaction, the focus shifted to automakers’ stock prices.
Traders remain uncertain about the tariff’s impact, unsure if the news is more detrimental to the dollar or U.S. trading partners. Major currency pairs like the yen, Mexican peso, and Canadian dollar displayed varying degrees of weakness against the U.S. dollar, which itself fluctuated against various rivals.
As investors brace for reciprocal tariffs in the coming week, there is rising concern about the potential ramifications on U.S. economic growth and inflation. European officials anticipate a 20% tariff from Trump, while experts suggest cautious optimism may lead to a euro/dollar downside if the tariffs persist.
(With inputs from agencies.)
