The dollar index (DXY00) Tuesday fell by -0.57% and posted a 4-3/4 month low. The dollar has been under pressure since last week when the US announced tariffs on Canada, China, and Mexico, fueling concerns that a trade war will erupt and derail the economy. The dollar was undercut Tuesday when President Trump raised his tariff to 50% from 25% on US imports of steel and aluminum in retaliation for Ontario slapping a 25% export tariff on electricity sent to the US.
The dollar found some support Tuesday after the US JOLTS Jan job openings rose more than expected. Also, continued weakness in stocks has boosted the liquidity demand for the dollar.
