The dollar on Wednesday resumed its fall, with both safe-haven and risk-sensitive currencies outperforming the greenback as traders waited to see if US President Donald Trump’s administration reaches new trading agreements with partners.
Media Talk Africa reports that the dollar tumbled last week on concerns over the economic impact of new tariffs and as investors shifted allocations overseas due to uncertainty over the erratic implementation of the trade levies.
The United States is reportedly in talks with countries including Japan, while tensions between China and the US are intensifying.
“We’re in a little bit of an information vacuum now with this stalemate between China and the U.S, and we’re waiting to see what deals get struck with other countries.
“There’s some big countries that could potentially be announcing deals, which then puts a framework around what the U.S. administration at least is trying to do with tariffs,” global head of FX at Jefferies in New York, Brad Bechtel, said.
The US president said on Wednesday that he would personally attend a meeting of Japanese and US trade officials.
In the same vein, South Korean Finance Minister Choi Sang-mok will hold a meeting with US Treasury Secretary Scott Bessent next week to discuss trade issues.
On Tuesday, Vice President JD Vance said there is a good chance that the United States and Britain will strike a great agreement on trade.
