Dollar Struggles Amid Tariff Turmoil and Interest Rate Speculations

The dollar remains under pressure as it hovers near a three-year low against the euro amid U.S. tariff uncertainties and interest rate cut expectations. Despite a steadier stance in early Asian trading, investor confidence is shaky, leading to movements out of dollar assets and impacting global currency markets.

The dollar faced persistent pressure on Tuesday, maintaining its position close to a three-year low against the euro. The currency's struggles came amidst ongoing uncertainties surrounding U.S. tariffs and potential interest rate cuts from the Federal Reserve.

In early Asian trading hours, a sense of calm returned to currency markets after last week's tumultuous events, which saw increased Treasury yields failing to bolster the dollar's appeal. Despite a modest recovery against the yen, the dollar remains vulnerable as investor confidence wavers.

Global markets are closely watching U.S. tariff policies and speculations about interest rate cuts. The Federal Reserve's dovish tone, influenced by tariff-induced economic shocks, suggests a potential policy shift to stave off recession. As such, the dollar's performance and future remain a focal point for investors worldwide.

(With inputs from agencies.)