The dollar changes a little, close to a low a week
Investing.com – The u.s. dollar was little changed against the other major currencies on Tuesday, hovering near a low of one week, while traders digested yet the news last week about the possible us tariffs on imports of steel and aluminum.
Investors remained cautious as u.s. president Donald Trump was facing a growing pressure to withdraw the proposed tariffs for steel and aluminum.
Trump has responded by putting pressure on Mexico and Canada, saying that he would raise the fees on steel imports if they signed a new version of the Agreement on free trade in north america, or NAFTA.
The tariffs, announced last week, had raised concerns about a trade war potential, which would have a negative impact on the u.s. economy.
The dollar index, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, was little changed at 89,92 at 5: 15 a.m. EDT (09: 15 GMT).
The euro and the british pound were steady, with EUR / USD at 1.2341 and the GBP / USD at 1.3847.
The sentiment vis-à-vis the euro remained vulnerable due to concerns over the electoral results of Italian inconclusive on Sunday.
In the absence of an absolute majority, Italy may be plunged into a period of political instability that could derail the economic reform in the third largest economy of the euro area.
Elsewhere, the yen was stronger, with USD / JPY down 0.21% to 105,99, while USD / CHF remained at 0,9399.
The yen has reacted after the governor of the Bank of Japan, Haruhiko Kuroda, has stated that the downside risks weigh on the forecasts of the central bank according to which inflation would reach its 2% objective by 2020.
The japanese currency was progressing last week after that Kuroda has said the BoJ will discuss an exit from monetary easing if it were to meet its inflation target.
The australian dollar has remained virtually unchanged, with the AUD / USD to 0,7759, while the NZD / USD rose 0.22% to 0,7241.
Earlier on Tuesday, the Reserve Bank of Australia has left interest rates at record highs and seemed less confident that the economy would achieve a growth of 3% or more this year, reducing the prospects of rate hikes in the coming months.
Moreover, the USD / CAD was slightly lower by 0.13% to settle at 1,2986.