Markets Brace for Tariff Turmoil Amid Steady Central Bank Policies

The dollar weakened as markets awaited U.S. tariffs under President Donald Trump while Australia's central bank held interest rates steady at 4.1%. The Australian dollar remained unchanged following the Reserve Bank of Australia's policy decision, and investors focus on possible tariff-driven market volatility.

The dollar softened on Tuesday as investors prepared for potential reciprocal tariffs from U.S. President Donald Trump, an event expected to shake the market. Meanwhile, Australia's central bank kept interest rates steady at 4.1% and maintained a cautious outlook on future cuts.

The Australian dollar remained flat at $0.6248 after the Reserve Bank of Australia's decision, which didn't surprise markets. The RBA's stance indicates a cautious approach to further rate cuts, as they await upcoming elections and inflation data before making any moves.

Currency markets remain in suspense pending details of Trump's impending tariffs, which have already led to increased duties on goods like aluminium and steel. Analysts predict ongoing market volatility in the second quarter, especially as unclear tariff strategies continue to unsettle investors.

(With inputs from agencies.)