Dollar falls out of favour as Donald Trump’s on-off tariffs hit US economy and threaten price hikes [Video]

The US president injected fresh uncertainty into the markets by again pausing tariffs he is threatening to impose on Canada and Mexico.

But the move did little to ease US economic jitters, keeping the safe-haven Japanese yen not far off its strongest against the greenback since early October, while the Swiss franc hit a three-month peak of 0.8814.

A dollar would buy you 0.77 British pounds, having been 0.79 on February 27.

The greenback also lost some ground against the Canadian dollar and Mexican peso following the announcement.

The euro traded up 0.27% at $1.0815 after strengthening to its highest in four months in the previous session, lifted by the European Central Bank’s hawkish rate cut and surging European bond yields on the back of Germany’s massive spending proposal.

Trump’s tariff exemption expires on April 2 when Trump said he will impose reciprocal levies on all US trading partners.

Following a slew of mixed economic data out …