By Rashidat Olushola Okunlade
The U.S. dollar (USD) fell against its major trading partners in the forex market, halting the greenback’s successive recovery amidst reaction to the Supreme Court tariff ruling.
The euro edged toward $1.18, recovering from its weakest level in a month, as the US dollar weakened following the US Supreme Court’s decision to overturn President Donald Trump’s broad emergency tariffs.
Investors also digested stronger-than-expected eurozone PMI data, which showed private-sector activity expanding at its fastest pace since November. Manufacturing growth surged at the sharpest rate since August 2025, while services activity also strengthened.
Markets also noted ECB President Christine Lagarde’s remarks to The Wall Street Journal, in which she confirmed she intends to complete her term and dismissed earlier speculation about an early departure.
Despite the rebound, the euro was still on track for a 0.7% weekly loss against the USD, pressured by Fed minutes showing policymakers remain split on the interest-rate outlook.
This raised questions about the pace of potential rate cuts under the next Chair. trading partners across the forex market in the just-concluded period amid tariff-related developments.
The greenback fell to 1.1807 against the euro and 1.3515 against the pound. The US dollar dropped to 154.71 against the yen, from an early 10-day high of 155.64.
The currency is seen finding support around 1.22 against the euro, 1.43 against the pound and 150.00 against the yen. The U.S. Supreme Court struck down President Trump’s use of emergency powers to impose trade tariffs.
The euro edged toward $1.18, recovering from its weakest level in a month, as the US dollar weakened following the US Supreme Court’s decision to overturn President Donald Trump’s broad emergency tariffs.
Investors also digested stronger-than-expected eurozone PMI data, which showed private-sector activity expanding at its fastest pace since November. Manufacturing growth surged at the sharpest rate since August 2025, while services activity also strengthened.
Despite the rebound, the euro was still on track for a 0.7% weekly loss against the USD, pressured by Fed minutes showing policymakers remain split on the interest-rate outlook, raising questions about the pace of potential rate cuts under the next Chair.
Reacting to the Supreme Court decision, President Donald Trump said new tariffs will be imposed under different authorities, replacing those the Supreme Court “incorrectly rejected.”
Trump plans to impose a 10% tariff “over and above our normal tariffs already being charged.
The new tariffs will be imposed under Section 122 of the Trade Act of 1974, Trump says. Trump also says a new Section 301 investigation will begin, which could lead to more permanent tariffs. “We have alternatives,” he said. “Great alternatives”.
Trump claimed foreign countries that have been “ripping us off for years are ecstatic over the Supreme Court’s ruling on tariffs. “They’re so happy, and they’re dancing in the streets,” Trump says. “But they won’t be dancing for long–that I can assure you”.
