Forex News: U.S. Dollar Falls Amid Tariff Worries

U.S. Dollar Falls Amid Tariff Worries

(RTTNews) - The U.S. dollar declined against its most major counterparts in the New York session on Thursday, following Trump's announcement of new tariffs on all auto imports.

Trade tensions intensified after Trump imposed a 25% tariff on auto imports starting next week.

Trump told reporters the reciprocal tariffs set to take effect next week will "very lenient" but threatened in a Truth Social post early this morning that he would impose far larger tariffs than currently planned "if the European Union works with Canada in order to do economic harm to the USA."

Trump threatened to impose even steeper tariffs on the European Union and Canada if they collaborate to harm the U.S. economy.

On the U.S. economic front, the Labor Department released a report showing first-time claims for U.S. unemployment benefits edged slightly lower in the week ended March 22nd.

The report said initial jobless claims slipped to 224,000, a decrease of 1,000 from the previous week's revised level of 225,000.

Economists had expected jobless claims to inch up to 225,000 from the 223,000 originally reported for the previous week.

The greenback fell to a 2-day low of 1.0820 against the euro and a 1-week low of 1.2991 against the pound, from an early fresh 3-week high of 1.0732 and more than a 2-week high of 1.2865, respectively. The currency is poised to challenge support around 1.10 against the euro and 1.31 against the pound.

The greenback weakened to a 2-day low of 0.8803 against the franc. If the currency falls further, it is likely to test support around the 0.87 region.

The greenback retreated to 0.5755 against the kiwi, from an early 2-day high of 0.5711. The currency may challenge support around the 0.60 level.

The greenback held steady against the aussie, after easing from a high of 0.6278 seen in the previous session. The pair is trading at 0.6302.

In contrast, the greenback climbed to a 2-day high of 1.4329 against the loonie and more than a 3-week high of 151.15 against the yen. The currency is seen finding resistance around 1.44 against the loonie and 152.00 against the yen.

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