The dollar was falling after U.S. Commerce Secretary Howard Lutnick said tariffs on Canada and Mexico would take effect Tuesday but hinted they could be lower than the planned 25%.
“The FX market is not pricing in 25% duties as a base case, and still leans in favor of either smaller tariffs or another last minute deal,” ING analyst Francesco Pesole said in a note.
The dollar was also hit by recently soft U.S. data that has dented the notion of U.S. exceptionalism, he said. If data this week are also soft and tariffs against Canada and Mexico are delayed again, the dollar faces further declines.