Forex – Dollar Pulls Away From 6-Week Highs as U.S. Politics Weigh

© Reuters. Dollar turns broadly lower on U.S. tariff news – The U.S. dollar edged lower against other major currencies on Friday, pulling away from six-week highs as concerns sparked by news of U.S. tariffs on steel and aluminum imports overshadowed upbeat comments by Federal Reserve Chair Jerome Powell.

U.S. President Donald Trump announced plans on Thursday to of 25% on imported steel and 10% on aluminum, in a move to “protect U.S. industry”.

The move sparked concerns over potential trade wars, which would have a negative impact on the U.S. economy, sending equity markets sharply lower.

The news overshadowed positive remarks by Fed Chair Powell, who told the Senate Banking Committee on Thursday that there was .

Two days earlier, the Fed president had reiterated that the U.S. central bank would likely move forward with gradual increases in interest rates.

Separately, New York Federal Reserve President William Dudley said on Thursday that four interest-rate hikes this year would constitute a “gradual” tightening.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 90.20 by 02:00 a.m. ET (06:00 GMT), off Thursday’s six-week peak of 90.89.

The euro and the pound were little changed, with at 1.2269 and with at 1.3780.

Elsewhere, the yen and the Swiss franc were stronger, with down 0.46% at 1065.74 and with shedding 0.24% to trade at 0.9395.

The Australian and New Zealand dollars were also higher, with easing up 0.09% to 0.7762 and with gaining 0.22% to 0.7268.

Meanwhile, was almost unchanged at 1.2836.

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