Dollar on track for best weekly performance in 3 years

The dollar is on track for its best weekly performance in nearly three years against major currencies and maintained its momentum today after US President Donald Trump announced new tariffs on dozens of trading partners.

The yen touched a four-month low against the dollar, extending Thursday’s decline after the Bank of Japan indicated it was in no rush to resume raising interest rates, according to Reuters.

In trade-related activity, the US currency rose against the Swiss franc after Trump set tariffs on Swiss imports at 39%, up from the 31% he had previously announced. The Canadian dollar fell to its lowest level in more than two months after Trump imposed a 35% tax on the country, up from the 25% he had previously threatened.

The US dollar remained strong despite Trump’s continued attacks on Federal Reserve Chairman Jerome Powell last night. Trump described Powell as a “bad” central bank chairman and described his decision to appoint Powell as a “mistake.”

The dollar index, which measures the performance of the US currency against a basket of six major currencies, including the euro, yen, and Swiss franc, rose to 100.10 overnight, breaking above 100 for the first time since May 29.

The yen reached 150.64 to the dollar after falling to 150.89 to the dollar earlier in the day, its weakest since March 28.