Euro Weakens as US Dollar Strengthens on Trade Tension Concerns

The euro declined on Tuesday, pressured by a strengthening US dollar, which benefited from statements by US President Donald Trump regarding trade policies. These statements highlighted the possibility of tightening existing restrictions on US imports from abroad. The EUR/USD pair dropped to 1.0430 compared to the previous day’s close of 1.0491. The pair reached its lowest level during Tuesday’s trading at 1.0492, against a low of 1.0413.

Trump indicated on Monday his desire for the United States to expand tariffs on imports coming into the United States from around the world, “from steel and copper to semiconductors.” Trump also said he is considering “raising the general tariff to levels higher than 2.5%,” indicating a hike in tariffs that cover all US imports. This suggests that the US president may soon begin restructuring US trade policies.

The US dollar has continued to rise since the beginning of Tuesday’s trading, benefiting from statements made by US President Donald Trump about tariffs and a comprehensive plan to revise US trade policies, statements that align with those that surfaced during his inauguration speech.

The dollar index, which measures the performance of the US currency against a basket of major currencies, rose to 107.87 points compared to the previous day’s close of 107.34 points. The index pair reached its highest level during today’s trading at 107.69 points against a high of 108.05 points.