Dollar Rises As Trump Confirms Tariffs

(RTTNews) - The U.S. dollar climbed higher on Thursday, scoring gains over its major counterparts, after U.S. President Donald Trump's confirmation that tariffs for Mexico and Canada will take effect March 4, and an additional 10% duty on Chinese goods will be imposed on the same day, on top of the 10% tariff also introduced earlier this month.

Oil prices climbed higher on Thursday as the U.S. government's decision to revoke Chevron Corporation's license to operate in Venezuela raised supply concerns.

The president also said in a Truth Social post that the April 2nd date for reciprocal tariffs on other U.S. trade partners will "remain in full force and effect."

In economic news, data from the Labor Department said initial jobless claims rose to 242,000 in the week ended February 22nd, an increase of 22,000 from the previous week's revised level of 220,000. Economists had expected initial jobless claims to inch up to 221,000 from the 219,000 originally reported for the previous month.

A report from the Commerce Department said durable goods orders shot up by 3.1% in January after tumbling by a revised 1.8% in December. Economists had expected durable goods orders to jump by 2% compared to the 2.2% slump that had been reported for the previous month.

A separate data from the Commerce Department showed the U.S. economy grew in line with its preliminary estimate in the fourth quarter of 2024, jumping by 2.3%, unchanged from the previous estimate. Economists had expected the pace of GDP growth to be unrevised.

The fourth quarter GDP growth reflects a notable slowdown compared to the 3.1% surge seen in the third quarter of 2024.

A report released by the National Association of Realtors on Thursday showed pending home sales in the U.S. dropped 4.6% to an all-time low of 70.6 in January after tumbling 4.1% to a revised 74.0 in December. Economists had expected pending home sales to slump by 1.3% compared to the 5.5% nosedive originally reported for the previous month.

The dollar index climbed to 107.31, gaining about 0.85%.

Against the Euro, the dollar firmed to 1.0399. Against Pound Sterling, the dollar strengthened to 1.2600 from around 1.2675.

The dollar firmed to 149.82 yen a unit from around 149.10 yen a unit on Wednesday. Against the Aussie, the dollar strengthened to 0.6235, gaining from around 0.6300.

The dollar climbed against Swiss franc, rising to CHF 0.8998 from around CHF 0.8945. Against the Loonie, the dollar firmed to C$ 1.4442 against the Loonie, rising from C$ 1.4343.