Dollar Under Pressure Amid Trump's Tariff Uncertainty

The U.S. dollar struggles against major currencies, influenced by President Trump's vague tariff plans on imports from China, Europe, Mexico, and Canada. Despite initial threats, specific details are lacking, causing market uncertainty and fluctuating currency values, while inflation risks and potential Fed rate cuts loom.

The U.S. dollar is facing challenges against major currencies as financial markets grapple with uncertainty over President Donald Trump's tariff plans.

Following Trump's comments on a potential 10% tariff on Chinese imports, and the threat of higher duties on Mexican, Canadian, and European goods, the dollar slid earlier in the week. The currency steadied somewhat on Tuesday, but remained under pressure, seeing a slight decline to hover close to the two-week low at 108 on Wednesday.

Despite initial fears, U.S. officials hint that any tariff implementation will be gradual, increasing market speculation. Analysts are also weighing the implications of Trump's policies, notably their potential inflationary impact and the likelihood of Federal Reserve interest rate cuts as early as July.

(With inputs from agencies.)