Dollar Declines as Investors Await Job Data Amid Economic Growth Concerns
The dollar experienced a decline in early Friday trading, approaching its lowest level in four months, due to growing uncertainty about the outlook for the U.S. economy amid ongoing changes in tariff policies. This drop has led investors to focus on the upcoming job data to be released later in the day.
Despite the announcement of a new tariff exemption for imports from Mexico and Canada by U.S. President Donald Trump, the move did little to ease the concerns of the nervous markets. As a result, the Japanese yen, considered a safe haven currency, remained near its highest level against the dollar since early October. The Swiss franc also reached its highest level in three months at 0.8814.
At the same time, the U.S. dollar declined against the Canadian dollar and the Mexican peso following Trump’s announcement of a tariff exemption set to expire on April 2. He also indicated that he would impose retaliatory tariffs on all U.S. trade partners after that date.
With mixed U.S. economic data released earlier this week, the focus is now on the non-farm payroll report due Friday. The report is expected to reveal the extent to which the economic slowdown is impacting the U.S. labor market. Kieran Williams, head of Asian currency management at In Touch Capital Markets, told Reuters: “Signs of a U.S. slowdown are continuing to increase.”
Reuters economists expect job growth of around 160,000 in February, compared to 143,000 in January, with the unemployment rate expected to remain at 4%.
Euro Records Its Biggest Weekly Gain Since 2009
Meanwhile, the euro rose by 0.27% to $1.0815, after reaching a four-month high in the previous session, supported by the European Central Bank’s interest rate cuts and higher European bond yields amid massive proposed spending in Germany.
The euro is on track for its largest weekly gain since March 2009, rising more than 4% since the start of the week. The U.S. Dollar Index dropped by 0.21% to 103.97 points, while the British pound remained unchanged at $1.28875.
The dollar also fell by 0.33% to 147.49 yen, while the Chinese yuan remained stable at 7.2441 against the dollar in offshore trading. The Australian dollar decreased by 0.48% to $0.6302.
Cryptocurrencies
Regarding cryptocurrencies, Bitcoin declined following news of President Trump signing an executive order to create a strategic reserve of the digital currency. The famous cryptocurrency dropped by 1.45%, reaching $88,178.66 in the latest trading session, after reducing its losses later.
Sources:
- Reuters data
- International economic reports
- European Central Bank data