Forex News: U.S. Dollar Advances Amid Tariff Concerns

U.S. Dollar Advances Amid Tariff Concerns

(RTTNews) - The U.S. dollar firmed against its most major counterparts in the New York session on Thursday, as investors rushed to safe-haven assets amid concerns about President Donald Trump's trade policies after he suggested the U.S. would respond to the European Union's countermeasures with even more tariffs.

With the EU saying it would impose tariffs on approximately $28 billion worth of U.S. goods in response to U.S. tariffs on steel and aluminum imports, Trump indicated the U.S. would react with reciprocal tariffs.

"Whatever they charge us with, we're charging them," Trump told reporters on Wednesday. "Nobody can complain about that."

Trump later threatened in a post on Truth Social to impose a 200 percent tariff on all wines, champagnes and alcoholic products coming out of the EU in response to a "nasty" 50 percent tariff on whisky.

Meanwhile, traders have largely shrugged off a Labor Department report showing producer prices in the U.S. were unexpectedly flat in the month of February.

The Labor Department said its producer price index for final demand was unchanged in February after climbing by an upwardly revised 0.6 percent in January.

Economists had expected producer prices to rise by 0.3 percent compared to the 0.4 percent growth originally reported for the previous month.

The greenback climbed to a 3-day high of 1.0822 against the euro and a 1-week high of 0.8854 against the franc. The currency is poised to challenge resistance around 1.05 against the euro and 0.90 against the franc.

The greenback edged up to 1.2920 against the pound. The greenback is likely to face resistance around the 1.27 level.

The greenback rose to 2-day highs of 0.6269 against the aussie and 0.5682 against the kiwi, from an early 6-day low of 0.6338 and a 3-day low of 0.5742, respectively. The greenback may face resistance around 0.61 against the aussie and 0.55 against the kiwi.

The greenback advanced to 1.4451 against the loonie. The currency is seen finding resistance around the 1.46 level.

In contrast, the greenback fell to a 2-day low of 147.40 against the yen. If the currency falls further, it is likely to test support around the 145.00 region.

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