U.S. Dollar Lower As Tariff Worries Ease

(RTTNews) - The U.S. dollar weakened against its major counterparts in the New York session on Tuesday, as President Donald Trump paused trade tariffs on Mexico and Canada for a month.

Trump agreed to delay 25 percent tariffs on imports from Mexico and Canada for at least 30 days on Monday.

However, China slapped tariffs on U.S. imports in a rapid response to a 10% trade duty imposed by the Trump administration on Chinese goods, which took effect from 00:00 ET today.

China's Finance Ministry said it will impose a 15 percent duty on imports of coal and liquified natural gas from the U.S. Also, there will be 10 percent additional duty on imports of crude oil, agricultural equipment and automobiles from the U.S. from February 10.

The dollar index, which measures the value of the USD against a basket of currencies, fell to 107.95.

The greenback declined to a 1-week low of 1.2492 against the pound, 4-day low of 1.0387 against the euro and a 6-day low of 0.9050 against the franc, off its early highs of 1.2378, 1.0271 and 0.9131, respectively. The greenback is seen finding support around 1.27 against the pound, 1.06 against the euro and 0.89 against the franc.

The greenback fell to near a 2-week low of 1.4309 against the loonie and 4-day lows of 0.6259 against the aussie and 0.5651 against the kiwi, from its early highs of 1.4503, 0.6170 and 0.5581, respectively. The next possible support for the greenback is seen around 1.38 against the loonie, 0.65 against the aussie and 0.60 against the kiwi.

The greenback reached as low as 154.25 against the yen. If the currency falls further, it is likely to test support around the 145.00 region.