Dollar Steadies Amid Tariff Uncertainties as Markets Await Key Rate Decisions

The U.S. dollar traded steadily against major currencies amid uncertainty over tariffs from President Trump. Major central banks are set to announce interest rate decisions next week, impacting currency movements. Trump's softer tone on tariffs has eased market concerns, but risk sentiment remains fragile.

The dollar held steady against major currencies on Thursday, lacking direction in the absence of definitive tariff announcements from U.S. President Donald Trump. Upcoming central bank rate decisions, including the Bank of Japan's expected rate hike, could impact currency trading in the coming week.

On Monday, the dollar experienced its sharpest one-day drop since November 2023, as President Trump's initial executive actions omitted tariffs. Despite previous high expectations of tariffs driving the dollar to a two-year peak, no immediate policy changes were made.

With the ECB and Federal Reserve poised to announce their policy decisions next week, the market remains watchful. Meanwhile, Trump's gentler stance on tariffs, particularly toward China, has allayed some fears, but market sentiment remains cautious.

(With inputs from agencies.)