Dollar Holds Steady As Markets Await Trump’s Tariff Decision

The US dollar remained just below a three-week high on Monday as traders braced for President Donald Trump’s next round of tariffs, set to be announced on April 2. The dollar index (DXY) stood at 104.03, holding steady after touching 104.22 on Friday—its highest level since March 7.

Euro Recovers While Yen Weakens

The euro showed slight gains after three consecutive sessions of declines, while the Japanese yen weakened against the dollar. The yen’s drop was influenced by rising US Treasury yields, which increased demand for the greenback.

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Tariffs and Growth Concerns Weigh on the Dollar

The American currency has faced pressure for most of 2025 as initial optimism around Trump’s pro-growth policies shifted to concerns over his aggressive trade stance potentially triggering a global recession.

Goldman Sachs analysts recently downgraded their dollar forecasts but still anticipate short-term strength. Their economists also revised down US growth expectations, citing the likelihood of steeper tariffs.

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With the April 2 tariff announcement approaching, currency markets remain on edge. Investors are watching closely to see whether Trump’s policies will fuel risk aversion or drive safe-haven flows into the American currency.

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