OTTAWA (dpa-AFX) - The U.S. dollar weakened against other major currencies in the European session on Friday, as the unpredictable economic policies of U.S. President Donald Trump and the decline in trust in the Federal Reserve, led to the downturn of USD.
Investors make cautious moves ahead of the upcoming U.S. reciprocal tariff headline.
U.S. President Donald Trump's announcement that his administration will begin issuing forma letters on trade matters has raised concerns that the U.S. government will impose tariffs effective next week.
Trump said late Thursday that he 'will begin sending letters on trade tariffs starting Friday.'
'We're probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they're going to pay to do business with the U.S.,' Trump said.
Additionally, the demand for the USD as a safe haven has decreased since the House of Representatives approved Trump's 'Big Beautiful Bill.' Trump's hallmark tax measure is predicted by economists to add $3-3.5 trillion to the nation's already soaring debt over the course of the next ten years. A situation that will raise the economy's budgetary vulnerabilities.
In the European trading today, the U.S. dollar fell to a 2-day low of 1.3682 against the pound, from an early high of 1.3645. The greenback may test support near the 1.38 region.
Against the euro, the yen and the Swiss franc, the greenback dropped to 1.1786, 144.18 and 0.7922 from early highs of 1.1756, 144.79 and 0.7951, respectively. If the greenback extends its downtrend, it is likely to find support around 1.19 against the euro, 142.00 against the yen and 0.77 against the franc.
The greenback edged down to 1.3567 against the Canadian dollar, from an early high of 1.3596. On the downside, 1.33 is seen as the next support level for the greenback.
Looking ahead, Canada S&P Global PMI for June is set to be published in the New York session.
U.S. markets remain closed today in observance of Independence Day holiday.
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