From Yahoo Finance: 2025-03-27 21:06:00

The dollar weakened on Friday ahead of Trump’s announcement on reciprocal tariffs, with the yen benefiting from safe haven flows as stocks tumbled. Traders are optimistic but concerned about the impact on economic growth and inflation. Uncertainty over the tariffs has added to investor caution.

Trump announced a 25% tariff on imported cars and light trucks starting April 3. Analysts believe tariffs on selective products are expected, but across-the-board tariffs would be a negative surprise. The U.S. currency dipped after core inflation rose more than expected in February, fueling fears of stagflation.

Consumer spending rebounded in the U.S. in February, while inflation expectations soared to a 2-1/2 year high. The dollar fell against the yen, while core consumer inflation in Japan accelerated in March. The euro rose slightly and inflation in France and Spain came in below forecasts, increasing bets for an ECB rate cut.

French consumer spending fell, Germany’s unemployment rate rose unexpectedly, and Italian business morale slumped in March. Sterling weakened against the dollar. British shoppers defied forecasts by increasing spending last month. Bitcoin fell 4.03% to $83,783.

Read more: Dollar slips on growth fears before next tariff announcement