Insignia Consultants | Euro at three-week low as Trump imposes auto tariffs
Euro at three-week low as Trump imposes auto tariffs
SINGAPORE, March 27 (Reuters) - The euro weakened to a three-week low on Thursday and the yen was steady against the dollar after U.S. President Donald Trump slapped a 25% tariff on imported cars and light trucks starting next week as the looming all-out trade war dims risk sentiment.
Investors worry that the trade duties will dent U.S. growth and potentially reignite inflation, although the prospect of narrower-than-feared tariffs has buoyed sentiment recently.
The currency market reaction to the auto tariffs was largely muted, with the euro down 0.07% at $1.0747 after touching a three-week low of $1.0733 in early trading. The yen was a shade stronger at 150.445 per dollar.
The dollar index , which measures the U.S. currency against six rivals, was at 104.61, close to the three-week high touched in the previous session.
The U.S. imported $474 billion of automotive products in 2024, including passenger cars worth $220 billion. Mexico, Japan, South Korea, Canada and Germany, all close U.S. allies, were the biggest suppliers.
