The U.S. dollar strengthened for a second straight day on Thursday, as investors assessed remarks on a range of potential tariffs from President Donald Trump.
Trump appeared to indicate on Wednesday that postponed import levies on Canada and Mexico could be delayed by roughly another month, saying the levies would come into effect on April 2.
"I have to tell you that, you know, on April 2, I was going to do it on April 1," Trump said. "But I’m a little bit superstitious, I made it April 2, the tariffs go on. Not all of them but a lot of them."
However, a White House official later said that Trump’s prior deadline of March 4 was still in effect "as of this moment," with a review of actions taken by Canada and Mexico to boost border security pending.
Trump also floated that he could soon enact a 25% "reciprocal" tariff on cars and other goods coming from the European Union. A spokesperson for the European Commission said the EU will respond "firmly and immediately against unjustified barriers to free and fair trade," Reuters reported.
Following Trump’s comments, the Canadian dollar and Mexican peso both firmed against the U.S. dollar, while the euro inched back from a one-month high notched in the previous session.
The U.S. dollar index, which tracks the greenback against a basket of its currency peers, ticked up by 0.5% to 106.97 by 09:33 ET (14:33 GMT).
Markets were also awaiting the upcoming release of the U.S. personal consumption expenditures price index on Friday, seeking insights into the Federal Reserve’s future interest rate decisions.
The central bank’s preferred inflation gauge, January’s PCE reading could provide critical information on consumer spending and price trends.
