Tariff Tensions: Dollar Falters Amid Global Trade Uncertainty

The dollar slipped from its recent highs as tariff-related developments impacted global currencies. The U.S. dollar's strength fluctuated among various key currencies, and traders awaited U.S. inflation data. Analysts remain uncertain how tariffs will affect inflation, with potential for surprises as the market reacts to new information on trade policy.

The U.S. dollar slightly retreated from its recent highs amidst tariff-driven uncertainty, as global traders await critical U.S. inflation data and developments on broader trade relations.

Amidst modest losses, the dollar held steady against the yen but struggled against the euro and other currencies, as the European Union, Mexico, and Canada condemned U.S. tariffs on steel and aluminum imports.

Expectations of stable U.S. interest rates add to the complexity, leaving analysts puzzled about inflation outcomes. Investors remain cautious, bracing for potential surprises based on upcoming trade and market data.

(With inputs from agencies.)