The U.S. dollar sank to its lowest level in more than a week on Wednesday, influenced by diminishing investor concerns over a global trade war. Meanwhile, the Japanese yen experienced a rally, spurred by encouraging wage data in Japan.
On Monday, as U.S. President Donald Trump seemed poised to enforce a 25% import tariff on Mexico and Canada, the dollar surged 1.3% to 109.88. However, the currency has since decreased by roughly 2% after Mexico and Canada secured a one-month delay by enhancing border security measures.
The dollar faced its steepest drop against the yen on Wednesday, driven by strong Japanese wage data and indications from a Bank of Japan representative about potential interest rate hikes. The U.S. currency’s losses continued following an unexpected slowdown in the U.S. services sector in January.
(With inputs from agencies.)
