Forex – Dollar Still on the Back Foot on U.S. Tariff Announcement

© Reuters. Dollar remains under pressure despite Powell remarks – The U.S. dollar remained lower against other major currencies on Friday, as worries over a potential global trade war following news of fresh U.S. tariffs continued to weigh on sentiment.

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 news sparked concerns over potential trade wars, which drastically dampened risk sentiment.

The announcement 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 down 0.09% at 90.15 by 05:15 a.m. ET (09:15 GMT), off Thursday’s six-week peak of 90.89.

The euro was moderately higher, with up 0.11% at 1.2277, while held steady at 1.3762.

Earlier Friday, data showed that activity in the UK construction sector but still remained subdued.

In the euro zone, a report showed that German retail sales fell in January, confounding expectations for an increase of 0.9%.

Elsewhere, the yen and the Swiss franc remained stronger, with down 0.50% at 105.69 and with sliding 0.44% to trade at 0.9378.

The Australian dollar was lower, with easing 0.08% to 0.7749, while held steady at 0.7247.

Meanwhile, rose 0.20% to trade at 1.2862.

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