U.S. Dollar Advances Amid Trump's Tariff Threats

The U.S. dollar firmed against its most major counterparts in the New York session on Friday amid concerns about President Donald Trump's renewed pledge to slap 25 percent tariffs on imports from Canada and Mexico on February 1.

On Thursday, Trump said he would follow through on his threat to impose 25 percent tariffs on imports from Canada and Mexico as early as Saturday, although crude flows may be exempted from the levies. He cited the flow of fentanyl and large trade deficits as among the reasons for the decision.

Trump also reiterated possible levies on China and threatened 100 percent tariffs on BRICS nations over dollar replacement moves.

Data from the Commerce Department showed that consumer prices in the U.S. increased in line with economist estimates in the month of December.

The personal consumption expenditures (PCE) price index rose by 0.3 percent in December after inching up by 0.1 percent in November. The increase matched expectations.

The greenback climbed to a 10-day high of 1.0360 against the euro and a 1-week high of 1.2387 against the pound, off its early lows of 1.0412 and 1.2439, respectively. The greenback is seen finding resistance around 1.02 against the euro and 1.22 against the pound.

The greenback rose to 155.01 against the yen and 1.4550 against the loonie, from its early lows of 153.90 and 1.4431, respectively. The greenback is poised to challenge resistance around 161.00 against the yen and 1.46 against the loonie.

In contrast, the greenback was trading at 0.6237 against the aussie and 0.5651 against the kiwi, down from its early highs of 0.6199 and 0.5623, respectively. The next possible support for the greenback is seen around 0.65 against the aussie and 0.60 against the kiwi.

The greenback fell to 0.9074 against the franc, from an early 11-day high of 0.9115. The next possible support for the greenback is seen around the 0.89 level.