Tariff Tensions: How Trump's Policies Are Shaking Global Markets

The U.S. dollar hit near a three-week high amid uncertainty over President Donald Trump's next round of tariffs. Markets remain anxious, with new tariffs expected on April 2. The euro gained slightly, while the dollar strengthened against the yen. The Turkish lira weakened amid geopolitical tensions.

The dollar edged close to a three-week high against major currencies on Monday, sparking anxieties among traders awaiting clarity on U.S. President Donald Trump's impending tariffs. Reports suggest the administration might exclude some sector-specific tariffs while imposing reciprocal levies in early April, according to Bloomberg and the Wall Street Journal.

The U.S. dollar index stood marginally lower at 104.02 by 1201 GMT after reaching 104.22 on Friday, a first since March 7. "Markets remain jittery as they anticipate news on Trump's tariffs ahead of the April 2 announcement," remarked Jane Foley, head of FX strategy at Rabobank.

The dollar faced pressure earlier this year due to mixed expectations over Trump's economic policies, which may now lead to concerns about recession if erratic trade measures persist. Markets watch closely with reciprocal levies set to be announced on April 2.