SINGAPORE: The dollar drifted lower on Monday after an early bump off a three-year low, as investor confidence in the world’s reserve currency remained in question following a stream of tariff-related pronouncements from US President Donald Trump.
Investors braced for another volatile week as Trump’s imposition and then abrupt postponement of tariffs on goods imported to the US continued to sow confusion.
The dollar reversed early gains as the Asian trading session got under way, languishing near a 10-year low against the Swiss franc at 0.8188.
Sterling held to most of its 1.7% gain from last week and stood at $1.3099, while the New Zealand dollar rose to a four-month high of $0.5860.
Trump on Sunday said he would announce the tariff rate on imported semiconductors over the next week, adding that there would be flexibility towards some companies in the sector.
The White House on Friday had granted an exclusion from steep tariffs for smartphones, computers and certain other electronics imported largely from China. Trump later said the move would be short-lived.
“At this point in time … it’s been handled haphazardly, heavy-handedly and with weight, and those measures have created a great deal of uncertainty,” said IG market analyst Tony Sycamore.
“Those storm clouds, they’re still circling, they haven’t gone anywhere.”
