Currency Markets Hold Steady Amid Policy Speculations

The dollar trades within narrow ranges due to the absence of tariff announcements from President Trump. Central bank policy decisions, including the Bank of Japan's expected interest rate hike, may influence currencies. Meanwhile, Trump hints at tariffs but adopts a less aggressive stance than anticipated.

The dollar remained steady against major currencies on Thursday, lacking direction as markets awaited clear tariff policies from U.S. President Donald Trump. Central bank policy decisions, including Japan's expected interest rate hike, could significantly influence currency movements in the upcoming week.

The U.S. Federal Reserve and the European Central Bank are set to reveal their rate decisions next week, potentially causing fluctuations in the currency market. The dollar index, reflecting its value against six key currencies such as the euro and yen, slightly rose to 108.37 in early European trading.

The dollar initially soared to a two-year peak in early January but has since experienced a dip amid Trump's softer-than-expected policies. Market reactions to his trade memo may shape the future of international tariffs. Meanwhile, other currencies like Japan's yen and Canada's dollar kept close to their last trading positions.

(With inputs from agencies.)