TOKYO – The US dollar hovered near its lowest since 2021 against the euro and the weakest since 2015 versus the Swiss franc on Monday, with traders alert for any trade-related headlines in the countdown to President Donald Trump’s tariff deadline.
Most US trade partners are set to see much steeper duties at the end of the 90-day moratorium on Trump’s “Liberation Day” reciprocal tariffs on Wednesday, with the President on Sunday clarifying the new rates would take effect from August 1.
Trump said his administration is close to finalizing several trade deals in the coming days, while he will name some dozen countries later on Monday that are receiving letters with their new, higher levies.
So far, only Britain, China and Vietnam have agreed any sort of trade deal with the White House.
“Market volatility appears inevitable when the pause officially ends and new tariff levels are announced,” James Kniveton, a senior corporate FX dealer at Convera, wrote in a client note.
At the same time, “the impact may prove more muted this time,” he said. “Unlike previous announcements where tariff levels exceeded expectations, current proposals are largely anticipated. Moreover, markets appear to be pricing in continued deadline extensions.”
The dollar slipped 0.1 percent to 0.7944 Swiss franc in Asian trading, edging back towards the July 1 low of 0.7869 franc, a level not seen since January 2015.
The US currency edged up slightly to 144.73 yen.
