The dollar rose against the euro and yen on Tuesday, showing signs of recovery following a sharp selloff. However, investors remain cautious due to concerns about the impact of US President Donald Trump’s trade tariffs on the US economy.
Investors are waiting for clarity on the US tariffs, which have led to reduced faith in US policymakers and a shift towards calmer waters outside of the United States. The slowdown in the US economy, uncertainty about tariffs, and improved sentiment towards Europe have contributed to this trend.
Data released on Tuesday showed that US import prices unexpectedly fell in March, indicating that inflation is subsiding before Trump’s sweeping tariffs came into effect.
The European Central Bank (ECB) is expected to cut interest rates by 25 basis points this week. The euro was last down 0.70% on the day at $1.127, while the Japanese yen rose 0.12% against the dollar.
Japan will seek full removal of additional tariffs imposed by Trump, and sterling was up 0.15% at $1.3209. The Australian dollar and New Zealand dollar also rose, while bitcoin fell 0.52% to $84,436.
Source: https://www.reuters.com/markets/currencies/dollar-steady-traders-grapple-with-tariff-uncertainty-volatility-2025-04-15