Dollar pinned near multi-year lows as Trump tariff deadline looms
Most U.S. trade partners are set to see much steeper duties at the end of Trump's 90-day moratorium on Trump's 'Liberation Day' reciprocal tariffs on Wednesday. So far, only Britain, China and Vietnam have agreed any sort of trade deal with the White House.
Trump said on Friday that he would on Monday name some dozen countries he had signed letters to with their new, higher levies, and pointed to August 1 as the date those rates would go into effect for many trading partners. U.S. Treasury Secretary Scott Bessent on Sunday predicted several big announcements in coming days.
'Market volatility appears inevitable when the pause officially ends and new tariff levels are announced,' James Kniveton, a senior corporate FX dealer at Convera, wrote in a client note.
At the same time, 'the impact may prove more muted this time,' he said. 'Unlike previous announcements where tariff levels exceeded expectations, current proposals are largely anticipated.
Moreover, markets appear to be pricing in continued deadline extensions.'
The dollar slipped 0.1% to 0.7939 Swiss franc early on Monday in Asia, edging back towards the July 1 low of 0.7869 franc, a level not seen since January 2015. It also fell 0.1% to 144.49 yen.
The euro eased 0.1% to $1.1780, not straying far from the July 1 peak of $1.1829, a level last seen in September 2021.
The dollar index , which measures the currency against those three rivals and three more major counterparts, was flat at 96.967, hovering above Tuesday's nearly 3-1/2-year trough of 96.373.
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Trump's administration is seeking to finalize dozens of trade deals with a wide range of countries before his July 9 deadline for the imposition of significant "retaliatory tariffs". The original BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates as members. Saudi Arabia has held off formally joining, according to sources, while another 30 nations have expressed interest in participating in the BRICS, either as full members or partners. Indonesia's senior economic minister, Airlangga Hartarto, is in Brazil for the BRICS summit and is scheduled to go to the US on Monday to oversee tariff talks, an official told Reuters. India's foreign ministry did not immediately respond to a request for comment. 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Business Recorder
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