Dollar Dilemmas: Uncertainty Amid Trump's Tariff U-Turns

The dollar remained steady on Tuesday amid ongoing volatility and uncertainty caused by Trump’s shifting tariff policies. Despite slight gains, the dollar is weakened against major currencies like the euro and yen. Investors remain wary, anticipating more market fluctuations due to unpredictable U.S. tariff announcements.

The dollar held its ground on Tuesday, staying near a three-year low against the euro and a six-month trough against the yen. Investors remain cautious about U.S. assets amid relentless changes in President Donald Trump's tariff strategies.

The recent volatility that plagued the dollar last week and drove Treasury yields upward seemed to have lessened on Tuesday. However, market sentiment continues to be fragile.

The euro, benefiting from the sell-off of U.S. assets, saw minor weakening, while the dollar inched up slightly after a significant drop against the Swiss franc and other currencies. Analysts remain skeptical about a sustained recovery for the dollar given the ongoing uncertainty surrounding U.S. tariffs.

(With inputs from agencies.)