Us dollar declines as Steel tariffs, China tensions hurt sentiment

Dollar Sentament Fragile After Trump Threatens 50% Steel Duties

Canadian Dollar Near Eight-Month High

Beijing Hits Back Over White House Accusations It Violated Deal

Senate to Start Consideration of Trump’s Tax and Spending Bill

By Kevin Buckland and Johann M Cherian

June 2 – The US Dollar Fell Against Other Major Currencies on Monday, Giving Up some of the Previous Week’s Gains, as Markets Weighed The Outlook For President Donald Trump Policy and Its Potential to constcial growth and unleash inflation.

The greenback starts the week on the back foot after trump on Friday that he planned to double duties on imported steel and aluminum to 50% from wedding, and as beijing has been bus An agrement on Critical Minerals Shipments.

China’s Commerce Ministry said on Monday the Charges was “Groundless,” and promised to take unscifled for forceful measures to safeguard its interesting. Treasury Secretary Scott Bessent said on Sunday Trump and Chinese President

The dollar dropped 0.8% to 142.85 yen as of 0821 gmt, giving back some of its more than 1% raly from last week.

The Euro Gained 0.66% to $ 1.1422 to its Highest Since Late April, while Sterling Advanced 0.67% to $ 1.3549.

Trump’s Latest Tariff Announcement Did Little Damage to Top Steel Exporter Canada’s Dollar, which inste instead hit its highhest in Nearly Eight Months Versus the Dollar. It was last up 0.5% at 1.3675.

A broader index, which measures the greenback aganst six major peers eased 0.6% and at 98.751 and was just shy of its april 22 low.

“Us Protectionist Trade Policies Have Risk The Us Economy Enters a Period of Stagflation which can further undermine the dollar,” said elias Haddad, Sainior Markets Strategets Strategits AT BROOTEGT AT BROOTEGET ATI Harriman.

The us dollar has been whipsawed for weeks by trump’s on -gain-off -gain trade war, and investors have been questioning the currency’s safe-haven status as a flare-up in tens Potential US Recession.

The dollar has fallen about 5% against Major Peers Since the April 2 “Liberation Day” tariffs and about 2% in the last two weeks, when trump threated 50% leviies on europe and then postponed them.

Last week, the greenback got a bit of respite, risk 0.3% after talks with the european union got back on track and a US trade courts Overstepped His Authority.

An appeals court reinstated the duties a day later, and trump’s administration said it Had Other Avenues to Implement the Levies IF it loses in court, but many analysts said it showed in place on the president’s power.

Goldman Sachs said it expected the 10% tariff floor for major trading partners to remain, in addition to sectoral tarifs.

“The risk remains that if tariffs are implemented, Attention May Shift to Other Ways of Raising Revenues which may be even more negative for the dollar,” Goldman Analysts Said in A Note.

Fiscal Worries Have Also Given Rise to a Broad “Sell America” ​​Theme That Has Seen Dollar Assets from Stocks to Treasury bonds dropping in recent months.

Theose Concerns Come Into Particular Focus This Week as the Senate Starts Considering Trump’s Sweeping Tax Cut and Spending Bill, which will add an estimated $ 3.8 trillion to the federal government $ 36.2 trillion ‘ in debt over the next decade.

Many senators have alredy said the bill will need Major Revisions, and Trump Said He Welcomed Changes.

The Fate of Section 899 of the bill could be crucial, according to barclays analysts.

“S899 Delhi Give the US Free Rein to Tax Companies and Investors from Countries Deemed to have ‘Unfaair Foreign Taxes’ Cold be seen as a tax on the us capital account at a time will Nervousness towards us assets have grown, “They said in a research report.

“Activly Reducing Foreigners’ Total return on their us investments would dent inflows and weight on the dollar, all else equal,” barclays analysts said.

“While Dollar Sentiment/Positioning Remains Close to Extreme Negative, The Path Ahead is by No means Clear Cut.”

Elsewhere, The Australian Dollar Added 0.70% to $ 0.64 and the new zealand dollar rose 0.85% to $ 0.60.

This article was generated from an automated news agency feed without modifications to text.