Dollar Extends Losses As Tariff Moves Fuel Growth Worries

(RTTNews) - The U.S. dollar slid on Wednesday, extending recent losses, as the Trump administration's tariff moves and the retaliatory measures announced by some countries have raised concerns about global economic growth.

Meanwhile, U.S. President Donald Trump has given a one-month tariff exemption to automakers after he spoke with the heads of General Motors, Ford Motor and Stellantis.

In economic news, a report released by payroll processor ADP on Wednesday showed private sector employment in the U.S. increased by much less than expected in the month of February, rising by 77,000 jobs, after climbing by an upwardly revised 186,000 jobs in January.

Economists had expected private sector employment to grow by 140,000 jobs compared to the addition of 183,000 jobs originally reported for the previous month.

The Institute for Supply Management released a report on Wednesday showing an unexpected uptick by its reading on U.S. service sector activity in the month of February. The ISM said its services PMI inched up to 53.5 in February from 52.8 in January, with a reading above 50 indicating growth. Economists had expected the index to edge down to 52.6. The dollar index dropped to 104.26, losing more than 1.4%.

Against the Euro, the dollar weakened to 1.0790, and against Pound Sterling, it eased to 1.2896.

The dollar weakened against the Japanese currency, fetching 148.89 yen a unit, down from around 149.75 yen on Tuesday. Against the Aussie, the dollar closed sharply lower at 0.6335.

The Swiss franc firmed to 0.8900 a unit of the greenback, and the Loonie strengthened to 1.4342 a unit of the U.S. currency.