The geopolitical events and economic data from the US and Euro took the centre stage in the foreign exchange market today.
US President Donald Trump said that he is imposing steel and aluminum trade tariffs from the European Union, Canada and Mexico. The tariffs will be set at 25% on steel while aluminium will be at 10% effective from Friday (their time).
The markets reacted negatively to the news as the main US stock indices ended the day in red. Meanwhile, data released by US this morning showed upbeat personal spending and declined jobless claims.
On the economic front, while the euro zone’s economy has been slowing down from strong growth last year, consumer price data published yesterday showed inflation jumped to 1.9 percent against the 1.6 percent forecast.
And remember our Fiji dollar is pegged to a basket of currencies two of which are US and Euro and any movement in these two currencies does correlate to the value of our Fiji dollar.