From Yahoo Finance: 2025-03-20 21:40:00

The dollar edged up against the euro, set for its first weekly gain this month, as investors took profits ahead of the April 2 deadline for reciprocal U.S. tariffs. The euro fell 0.3% to $1.08223, on track for a 0.6% weekly drop, its first since February 28.

Amid concerns over U.S. economic growth from trade policies, the dollar found some relief as the Federal Reserve signaled no rush to cut interest rates. The euro weakened as investors cashed in gains, despite Germany’s approval of a 500-billion-euro fund to boost its economy.

Fed, Bank of England, and Bank of Japan kept interest rates steady, evaluating the impact of Trump’s trade tariffs. Fed Chair Powell indicated two potential quarter-point cuts later this year, highlighting the challenge of navigating tariff policies and their economic impact.

Chicago Fed President Goolsbee mentioned uncertainties on whether tariff plans will lead to persistent inflation, affecting the Fed’s response. Capital Economics expects tariff rates to rise significantly, leading to a dollar rebound. The dollar increased by 0.3% to 149.21 yen.

Bank of Japan refrained from raising rates, citing increased economic uncertainty due to U.S. tariffs. Sterling dropped 0.3% to $1.293 after the Bank of England warned against assuming further cuts amid global and UK economic uncertainties. Bitcoin saw a 1% decline, trading at $83,973.



Read more at Yahoo Finance: Dollar ends week higher versus euro as traders book gains