TOKYO — The US dollar edged lower on Monday, giving back some of its gains from last week, as markets weighed the outlook for President Donald Trump’s tariff policy and its potential to constrict growth and unleash inflation.
The greenback starts the week on the back foot after Trump said late on Friday that he plans to double duties on imported steel and aluminum to 50 percent from Wednesday.
The US currency has been whipsawed for weeks by Trump’s on-again-off-again trade war, falling when a flare up in tensions stokes worries of a potential US recession.
The dollar witnessed weekly tumbles of 3 percent against major peers in the days after the April 2 “Liberation Day” tariffs and 1.9 percent two weeks ago, when Trump threatened 50 percent levies on Europe.
Last week, the greenback got a bit of respite, rising 0.3 percent after talks with the European Union got back on track and a US trade court blocked the bulk of Trump’s tariffs on the grounds that he overstepped his authority.
Although an appeals court reinstated the duties a day later as it considers the case, and Trump’s administration said it had other avenues to implement the levies if it loses in court, many analysts said it shows there are still checks in place on the President’s power.
The dollar dropped 0.3 percent to 143.57 yen, giving back some of its more than 1 percent rally from last week.
The euro gained 0.2 percent to $1.1372, and sterling advanced 0.3 percent to $1.3489.
The Australian dollar added 0.3 percent to $0.6454.
