U.S. Dollar Falls After U.S. Supreme Court's Ruling On Tariffs

(RTTNews) - The U.S. dollar weakened against other major currencies in the Asian session on Monday, after the U.S. Supreme Court striking down most of U.S. President Donald Trump's global tariffs saying the International Emergency Economic Powers Act, or IEEPA, does not authorize the president to impose tariffs.

Traders also kept a close eye on the evolving geopolitical situation involving the U.S. and Iran.

The US Supreme Court ruled on Friday that President Trump had overreached himself by using his authorities under the IEEPA to impose broad tariffs on trading partners. To maintain trade tensions, US President Trump responded by declaring that he was "ashamed of certain members of the court" and imposing 15% global tariffs.

In the Asian trading today, the U.S. dollar fell to 5-day lows of 1.1833 against the euro and 1.3532 against the pound, from last week's closing quotes of 1.1782 and 1.3484, respectively. If the greenback extends its downtrend, it is likely to find support around 1.19 against the euro and 1.37 against the pound,

Against the yen and the Swiss franc, the greenback dropped to 5-day lows of 154.28 and 0.7718 from Friday's closing quotes of 155.07 and 0.7759, respectively. The greenback may test support near 152.00 against the yen and 0.76 against the franc.

The greenback slipped to nearly a 2-week low of 0.7112 against the Australian dollar, from last week's closing value of 0.7084. On the downside, 0.72 is seen as the next support level for the greenback.

Against the New Zealand and the Canadian dollars, the greenback slid to 5-day lows of 0.6003 and 1.3650 from last week's closing quotes of 0.5977 and 1.3682, respectively. The next possible downside target for the greenback is seen around 0.61 against the kiwi and 1.35 against the loonie.

Looking ahead, U.S. Chicago Fed national activity index for January, U.S. factory orders for December, U.S. Dallas Fed manufacturing index for February are set to be published in the New York session.