Dollar Strengthens Amid Tariff Tensions

The dollar rose against the yen and euro following U.S. tariff threats. Market relief faded as President Trump hinted at new tariffs on imports. Traders are cautious amidst volatile dollar movements and potential interest rate policies. Key focus remains on U.S. trade strategies and global economic impacts.

The dollar strengthened against the yen and euro on Tuesday, bolstered by fresh U.S. tariff threats, which left traders on edge after a tumultuous start to the week. Concerns over America's grip on artificial intelligence technology amplified market jitters.

President Donald Trump has signaled intentions to levy tariffs on imported computer chips, pharmaceuticals, and steel to boost domestic manufacturing. This announcement followed a temporary de-escalation of trade tensions with Colombia.

Sim Moh Siong, a currency strategist at Bank of Singapore, highlighted the uncertainty surrounding dollar trends, influenced heavily by fluctuating tariff-related headlines. The dollar index rose slightly, capturing attention ahead of the February 1st tariff deadline acknowledged by market players.

(With inputs from agencies.)