Global Currencies React to U.S. Tariff Hikes, Awaiting Fed Insights

The U.S. dollar rose on the news of President Donald Trump announcing increased tariffs on steel and aluminium imports. Currencies showed modest movements as Asian markets took a cautious approach amidst a Japanese holiday. Markets are also anticipating Federal Reserve Chair Jerome Powell’s testimony and U.S. inflation data.

The U.S. dollar gained strength on Tuesday, boosted by President Donald Trump’s declaration to elevate tariffs on steel and aluminum imports. The planned reciprocal tariffs on international trade stirred cautious moves in global currency markets.

In Asian trading, where activity was subdued due to a Japanese holiday, the U.S. dollar made modest gains. Trump’s formal announcement of a 25% tariff on steel and aluminum will take effect on March 4, confirmed by a White House official.

Investors now await Federal Reserve Chair Jerome Powell's testimony and U.S. inflation data for further economic insights, as trading experts predict a potential rise in the dollar's value by week’s end.