(Adds data, updates prices)
By Karen Brettell
NEW YORK, June 10 (Reuters) - The dollar gained on Monday after the United States
and Mexico reached a deal to avoid tariffs, while the euro faltered after sources said
European Central Bank policymakers were open to cutting interest rates should economic
growth slow.
On Friday, Mexico agreed to rapidly expand an asylum program and deploy security
forces to stem the flow of Central American migrants to the U.S. border.
U.S. President Donald Trump had threatened to impose 5% import tariffs on all
Mexican goods starting on Monday if Mexico did not commit to do more to tighten its
borders.
“The news that tariffs on Mexico will now be averted is the main reason the dollar
had a good bounce overnight,” said Richard Franulovich, head of FX strategy at Westpac
Banking Corp in New York.
Last week, the greenback weakened on concerns that trade disputes would hurt the
global economy. U.S. jobs data also was weaker than expected, feeding expectations the
Federal Reserve would cut U.S. interest rates. Jobs data on Monday showed a brighter outlook, with U.S. job openings falling
slightly in April as hiring surged to a record high. The U.S.-China trade war and worries that Trump will slap tariffs on Japan and
Europe are likely to keep investors averse to loading up on riskier assets.
“I think the market psyche has been rattled and this is increasingly going to be a
headwind for sentiment,” said Franulovich. “There is still the outstanding issue with
China, and on top of that many other countries that are in his cross hairs.”
Trump said on Monday he was ready to impose another round of punitive tariffs on
Chinese imports if he does not reach a trade deal with China's president at a Group of
20 summit later this month. The euro dipped after two sources familiar with the ECB's policy discussions said on
Sunday that a rate cut was firmly in play if the bloc's economy stagnates again after
expanding by 0.4% in the first quarter. The single currency soared last week after the ECB said rates would stay "at their
present levels" until mid-2020 instead of hinting at rate cuts, as some expected.
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Currency bid prices at 2:16PM (1816 GMT)
Description RIC Last U.S. Close Pct YTD High Bid Low Bid
Previous Change Pct
Session Change
Euro/Dollar EUR= $1.1316 $1.1331 -0.13% -1.33% +1.1330 +1.1291
Dollar/Yen JPY= 108.3800 108.1800 +0.18% -1.71% +108.7100 +108.3400
Euro/Yen EURJPY= 122.66 122.60 +0.05% -2.82% +122.9100 +122.6300
Dollar/Swiss CHF= 0.9890 0.9876 +0.14% +0.77% +0.9920 +0.9877
Sterling/Dollar GBP= 1.2692 1.2734 -0.33% -0.51% +1.2746 +1.2655
Dollar/Canadian CAD= 1.3272 1.3265 +0.05% -2.68% +1.3280 +1.3225
Australian/Doll AUD= 0.6958 0.6998 -0.57% -1.29% +0.7022 +0.6958
ar
Euro/Swiss EURCHF= 1.1193 1.1193 +0.00% -0.54% +1.1209 +1.1183
Euro/Sterling EURGBP= 0.8916 0.8899 +0.19% -0.76% +0.8929 +0.8880
NZ NZD= 0.6612 0.6664 -0.78% -1.56% +0.6678 +0.6606
Dollar/Dollar
Dollar/Norway NOK= 8.6525 8.6243 +0.33% +0.19% +8.6669 +8.6151
Euro/Norway EURNOK= 9.7932 9.7772 +0.16% -1.14% +9.7967 +9.7548
Dollar/Sweden SEK= 9.4136 9.3967 +0.06% +5.02% +9.4382 +9.3970
Euro/Sweden EURSEK= 10.6545 10.6480 +0.06% +3.80% +10.6651 +10.6330