Around 12:40 p.m., the greenback takes 0.18% at the euro, at 1.1733 dollars, but dropped 0.05% in the book, to 1.3541 dollars.
The dollar hesitates on Wednesday, on a market scrutinizing the continuation of commercial negotiations after the announcement of an agreement between the United States and Japan, and reassured by the maintenance of the President of the Federal Reserve (Fed), Jerome Powell.
The compromise found between Washington and Tokyo provides for reciprocal customs duties of 15% on Japanese products imported into the United States, well below the 25% surcharge which the archipelago was threatened.
Significant relief for Japan which is currently subject to a 10% floor surcharge, as well as 25% on cars and 50% on steel and aluminum.
“The agreement has brought a certain relief”, but “investors remain cautious”, sums up Dat Tong, analyst at Exness.
A compromise remains uncertain with the European Union, Mexico or Canada by the date of 1is august.
Around 12:40 p.m. in Paris, the greenback took 0.18% at the Euro, at 1.1733 dollars, but dropped 0.05% in the book, to 1.3541 dollars.
The Yen benefits from this agreement, slightly 0.13% in front of the American currency, at 146.43 yen for a dollar.
But the Japanese motto also suffers with “increased political uncertainty” in Japan, notes Lee Hardman, analyst at MUFG.
According to the daily Yomiuri, after his stingy electoral debacle of the weekend, Prime Minister Shigeru Ishiba wishes to wait for the return from Washington to the Japanese commercial negotiator before deciding as to announce his resignation. Mr. Ishiba, however, denied Tuesday that he had discussed his resignation.
“The drop in yields” of US Treasury bills “weighed on the dollar”, also note the Deutsche Bank analysts.
According to them, this decrease is explained, “by the conviction (of the market, editor’s note) that the position” of Mr. Powell, “is relatively sure”, after the US Treasury Secretary Scott Bessent estimated on Tuesday that there was no reason for his immediate resignation.
However, a reflux of bond rates makes the currency less attractive for foreign investors.
The prospect of a dismissal of Mr. Powell had nevertheless weighed on the dollar in recent days, faced with the possibility that his replacement is displayed in favor of lower interest rates, following the will of Donald Trump.
Analysts are also counting on the fact that the European Central Bank (ECB) maintains its main key rate on Thursday, its deposit rate, unchanged at 2%, satisfied by inflation which has reached its target of 2% in the euro zone.