The US dollar index held above 104 as investors considered President Trump’s trade policy stances ahead of an important deadline. The dollar experienced pressure earlier in the year due to concerns that tariffs might hurt the US economy, but it recovered somewhat after the Federal Reserve indicated no rush to cut interest rates despite anticipating rate reductions later this year. Its performance varied against other major currencies, strengthening against some and weakening against others.
- The US dollar index remained firm above 104.
- Investors awaited clarity on President Trump’s trade policies.
- April 2 is the deadline for reciprocal tariffs.
- Trump suggested “flexibility” in the tariff plan.
- Reports indicated the tariffs may be narrower in scope.
- Tariffs are expected to weigh on US economic growth.
- The Federal Reserve reaffirmed no rush to cut interest rates.
- The dollar held steady versus the euro, sterling, and kiwi.
- The dollar strengthened against the yen and yuan.
- The dollar weakened against the Australian dollar.
Overall, the dollar’s performance is tied to both trade policy and monetary policy expectations. Uncertainty surrounding tariffs is a significant factor influencing its direction. The Federal Reserve’s stance on interest rates provides some support, but currency-specific factors are also contributing to its fluctuating value against other major currencies.