The U.S. dollar strengthened against major currencies on Wednesday as U.S. consumer prices rose by 0.2% last month, below the forecast of 0.3%.
Global trade tensions remained a focus as the European Union announced counter-tariffs on $28.39 billion worth of U.S. goods, effective in April. The move came in response to U.S. tariffs on steel and aluminium that took effect the same day.
The dollar gained 0.55% against the Japanese yen, reaching 148.59 yen. It also strengthened 0.07% against the Swiss franc to 0.883 but remains lower against both currencies for the month.
The euro eased after hitting a five-month peak of $1.0947 on Tuesday, following Ukraine’s statement that it supported Washington’s proposal for a 30-day ceasefire with Russia. The Kremlin stated it was waiting for further details from the U.S. The euro was last up 0.27% at $1.0889 and has gained nearly 5% against the dollar so far in March.
The dollar index, which tracks the greenback against a basket of currencies, rose 0.22% to 103.68, breaking a seven-session losing streak.
The Bank of Canada cut its key policy rate by 25 basis points to 2.75%, citing economic risks from U.S. tariffs. Hours after announcing a plan to double tariffs on Canadian steel and aluminium to 50%, U.S. President Donald Trump walked back the decision. A Canadian official also dropped plans for a 25% surcharge on electricity.
The U.S. dollar weakened against the Canadian dollar, trading down 0.14% to C$1.44 per dollar. It is down 0.36% against the loonie in March.
The British pound eased after reaching a four-month high of $1.2990 earlier in the session. It was last down 0.13% at $1.2930.
