Dollar Dips Amid Trump's Tariff Worries and Pre-Holiday Trading Lull

The U.S. dollar weakened broadly on Wednesday amid investor caution over potential tariff conflicts instigated by President-elect Donald Trump. Pre-holiday trading was thin, with many traders refraining from extensive market activities. Economic indicators suggested resilience, but Trump's tariff stance kept markets on edge.

The U.S. dollar experienced a broad decline on Wednesday, influenced by pre-holiday trading volumes and investor uncertainty about President-elect Donald Trump's proposed tariffs. Trading was notably sparse as market participants prepared for the Thanksgiving holiday.

Key economic data revealed resilience in the U.S. economy, but failed to significantly alter expectations for Federal Reserve policy. The dollar's decline offset recent gains fueled by economic strength, while market players remained wary of tariff-induced instability.

Trump's intent to impose tariffs on major trading partners, including Canada, Mexico, and China, heightened investor anxiety. The easing dollar lifted the euro, and currency markets remained vigilant of potential trade dynamics affecting global stability.

(With inputs from agencies.)