U.S. Dollar Rises As US And China Reach Deal To Slash Tariffs For 90 Days

(RTTNews) - The U.S. dollar strengthened against other major currencies in the European session on Monday, after the U.S. and China struck a deal to suspend tariffs for 90 days and slash rates going forward, following negotiations in Switzerland over the weekend.

U.S. trade representative Jamieson Greer announced a 90-day pause on tariffs. The U.S. tariffs on Chinese goods will fall to 30 percent from 145 percent while Chinese duties on U.S. imports will fall to 10 percent from 125 percent, the two countries announced today. The easing is effective from May 14. More details are still to be released.

"We have substantially moved down the tariff levels," said U.S. Treasury Secretary Scott Bessent, who led the American delegation at the talks. "Neither side wants a decoupling."

In the European trading today, the U.S. dollar rose to nearly a 5-week high of 148.23 against the yen and a 4-week high of 1.3160 against the pound, from early lows of 145.72 and 1.3300, respectively. If the greenback extends its uptrend, it is likely to find resistance around 152.00 against the yen and 1.29 against the pound.

Against the euro and the Swiss franc, the greenback advanced to more than 1-month highs of 1.1083 and 0.8468 from early lows of 1.1243 and 0.8331, respectively. On the upside, 1.10 against the euro and 0.90 against the franc are seen as the next resistance levels for the greenback.

Against the Australia and the New Zealand dollars, the greenback climbed to 4-day highs of 0.6462 and 0.5941 from early lows of 0.6393 and 0.5876, respectively. The next possible upside target for the greenback are seen around 0.65 against the aussie and 0.60 against the kiwi.

The greenback jumped to nearly a 5-week high of 1.3981 against the Canadian dollar, from an early low of 1.3915. The greenback may test resistance around the 1.45 region.

Looking ahead, U.S. WASDE report and U.S. monthly budget statement for April are slated for release in the New York session.