Forex News: U.S. Dollar Weakens As Tariff Concerns Ease

U.S. Dollar Weakens As Tariff Concerns Ease

(RTTNews) - The U.S. dollar declined against its major counterparts in the New York session on Thursday, as worries about tariffs eased following the Trump administration's decision to delay car tariffs for Canada and Mexico by a month.

Further, Commerce Secretary Howard Lutnick told CNBC that all goods and services that are compliant with the United States-Mexico-Canada trade agreement will likely be excluded from Trump's tariffs for one month.

President Donald Trump announced on Truth Social that he will delay tariffs on Mexico's USMCA-compliant goods until April 2.

In economic news, the Labor Department released a report showing first-time claims for U.S. unemployment benefits fell by more than expected in the week ended March 1st.

The report said initial jobless claims dipped to 221,000, a decrease of 21,000 from the previous week's unrevised level of 242,000. Economists had expected jobless claims to edge down to 235,000.

On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of February.

The greenback fell to more than a 5-month low of 147.30 against the yen and a 4-month low of 1.0853 against the euro. The greenback is poised to challenge support around 141.00 against the yen and 1.10 against the euro.

The greenback touched 0.6363 against the aussie, 1.4239 against the loonie and 0.5759 against the kiwi, setting 10-day lows. The currency is likely to locate support around 0.65 against the aussie, 1.38 against the loonie and 0.60 against the kiwi.

The greenback dropped to near a 3-month low of 0.8827 against the franc, from an early 2-day high of 0.8925. If the currency falls further, it is likely to test support around the 0.87 region.

In contrast, the greenback held steady against the pound after falling to nearly a 4-month low of 1.2923 in the previous session. The pair was worth 1.2893 at yesterday's close.

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