The dollar falls due to Trump's concern in the face of customs tariffs

Further to grim:
The US dollar has recorded its strongest weekly loss on Friday since 2023, after losing 1.8 % since Monday, but analysts expect a rebound.

The US dollar fell on Friday and has been about to know its strongest weekly loss for over a year after US President Donald Trump suggested a softer position on customs duties against China, adding to uncertainty on the commercial policy that maintained the stock markets in suspense.

Trump told Fox News on Thursday that his recent conversation with Chinese President Xi Jinping () was friendly and he thought he could reach a trade agreement with China.

“We have a very big power over China, these are the customs prices, and they don't want it, and I prefer not to have to use it, but it is a huge power on China”, a- he said.

Photo: Reuters

The US dollar dropped 0.8 percent compared to a currency basket on Friday, before reducing its losses at the end of the day to 0.65 percent, but it still recorded its strongest weekly loss since November 2023, after losing 1.8 percent since Monday. .

Some analysts have warned that the dollar could once again increase if US customs duties and interest rates were changing.

We believe that the dollar has to climb, said Simon Macadam, chief deputy world economist at Capital Economics.

Its so that now appreciation reflects both the solidity of economic data in the United States compared to their peers and the evaluation of investors in Trump policy, both of which have contributed to a displacement of differential rates of Interest in favorable to the dollar, he added.

The MSCI index of global actions has completed little, while Wall Street's actions were dull. The S&P 500 index fell 0.3 percent, the Dow Jones Industrial Average lost 0.3 percent and the Nasdaq Composite lost 0.5 percent.

The Chinese stock markets and monetary markets straightened up following the comments of Trump, leaving the features index up 0.8 percent and the Yuan has strengthened compared to the dollar, which dropped by 0.7 for One hundred to 7.239 on the offshore market.

Oil prices have stabilized and reduced the losses suffered after Trump announced that he would ask Saudi Arabia and OPEC to lower oil prices.

US gross trial contracts increased slightly $ 74.66 in a barrel and crude Brent increased by 0.3% to $ 78.50.

Amélie Derambure, senior multi-active portfolio manager at Amundi in Paris, said that pro-American policies of Trump require a drop in oil prices.

This type of policies could also benefit other players around the world, such as Europe for example, if we have a lower oil price which will also benefit Europe, so that it finally wishes to implement Something that is not detrimental to Europe. she said.

In the foreign exchange markets, the Yen won 0.2% compared to the dollar at 155.7 after the Bank of Japan noted its interest rates at their highest level since the global financial crisis of 2008.

The Governor of the Bank of Japan, Kazuo Ueda, said that the central bank would continue to increase interest rates as wages and prices increase, adding that it was possible to further increase loan costs Before they reach levels deemed neutral for the economy.

The yields of the US Treasury, which fell in relation to the summits of January when the concerns concerning a new inflation thrust was faded, remained stable on Friday.

The yield of the US Treasury at 10 years old fell slightly at 4.6194 percent, below the highest of 14 months last week by 4.809 percent.

The European Central Bank and the US Federal Reserve must meet next week while political decision -makers are digesting the first measures of the Trump administration.

Interest rate

The Fed should maintain its unchanged interest rates, but the broader history that will take place will be the way in which the central bank will face the first measures of Trump which are likely to shape the economy this year, including the requirements according to which the Fed continues to reduce borrowing costs.