SINGAPORE- The dollar firmed a touch and other currencies held in tight ranges on Wednesday as traders anxiously awaited details of US President Donald Trump’s tariff plans later in the day that could set the tone for markets in the near term.
The euro last bought $1.07875 while sterling fetched $1.2914, both easing slightly ahead of a White House Rose Garden announcement that will likely see the imposition of dramatic new duties that could upend the global trade system.
Trump has for weeks trumpeted April 2 as “Liberation Day”, and White House spokeswoman Karoline Leavitt said reciprocal tariffs on countries that impose duties on US goods would take effect immediately after Trump’s announcement.
“Markets are going to be jittery ahead of the announcement,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia.
“Sentiment is going to be driven by any further tariff headlines and in turn that will drive currency moves ahead of the big announcement.”
Against the yen, the dollar rose 0.19 percent to 149.92
The Australian dollar was up 0.26 percent at $0.6295, while the New Zealand dollar gained 0.31 percent to $0.57185, with both recovering slightly from their falls at the start of the week.
Details about the size and scope of the latest trade barriers set to come into force remain unknown, but the Washington Post reported that Trump’s aides are considering a plan that would raise duties on products by about 20 percent from nearly every country, rather than targeting certain countries or products.
“While a 20 percent blanket tariff rate would be theoretically seen as a net positive for the US dollar, the market is most intently focused on whether tariffs accelerate the stagflation risk in the US economy,” said Chris Weston, head of research at Pepperstone.
