Dollar Steady Ahead of Trump's April Tariff Announcement

The U.S. dollar has experienced mixed performance recently as traders await clarity on President Trump's upcoming round of tariffs, scheduled for April 2. The dollar index fluctuated around the mid-104s, supported by stronger services activity but tempered by uncertainty regarding the impact of proposed tariffs on economic growth. Concerns over potential recession linked to aggressive trade policies have pressured the dollar, despite its relative yield advantage. The euro slightly rebounded after previous declines, while the yen weakened due to disappointing economic data from Japan. Analysts expect that the anticipated tariffs could provide temporary support for the dollar, but the overall sentiment remains cautious as markets navigate through uncertainties. Investors are particularly focused on how the new trade policies will affect global supply chains and economic growth prospects.