The U.S. dollar steadies just below a three-week high on Monday as markets await clarity on President Donald Trump’s next round of tariffs.
Reports indicate that the Trump administration may exclude certain sector-specific tariffs while imposing reciprocal levies starting April 2.
The dollar index, which measures the greenback against six major currencies, dips slightly to 104.02 after reaching 104.22 on Friday, its highest level since March 7.
The euro rebounds 0.22% to $1.0834, recovering some of last week’s losses and extending its 4.4% monthly gain against the dollar. Eurozone business activity grows at its fastest pace in seven months in March, supported by easing manufacturing downturns despite slower service sector growth.
Germany’s upper house of parliament ratifies changes to fiscal constraints, leading to short-term fluctuations in the euro’s strength. The Japanese yen weakens as the dollar gains 0.26% to 149.7 yen, following a rise in U.S. Treasury yields.
Sterling climbs 0.26% to $1.29485 ahead of British finance minister Rachel Reeves’ spring budget update later this week.
The Turkish lira weakens to about 38 per dollar after Istanbul Mayor Ekrem Imamoglu, a key political rival of President Tayyip Erdogan, is jailed pending graft charges. Turkey’s lira briefly hit a record low of 42 per dollar last week as the central bank tightened monetary policy by halting one-week repo auctions and raising its overnight lending rate to 46%.
Global markets monitor ongoing U.S.-Russia negotiations in Saudi Arabia for a potential Black Sea ceasefire deal.
