U.S. Dollar Dips Amid Tariff Uncertainty as Trump Denies Reports

The U.S. dollar neared a one-week low amidst tariff-related uncertainty. Market focus is on U.S. economic data and whether President-elect Trump's tariff policies will align with his campaign rhetoric. Investors are also assessing potential euro strength and ECB rate decisions amidst inflation concerns.

The U.S. dollar approached a one-week low on Tuesday, as market participants await crucial economic data while pondering if President-elect Donald Trump's tariff policies will match his rhetoric. The dollar's recent depreciation reflects investor caution about potential inflationary impacts and monetary policy shifts.

Trump dismissed a Wall Street Journal report that suggested his aides were crafting tariff plans focused only on critical imports. This uncertainty dampened the dollar, keeping investors on edge regarding evolving U.S. policy directions.

Attention has shifted to the U.S. JOLTS job openings report and the ISM Services index, as investors scrutinize these indicators for economic health insights. Meanwhile, euro movement reflects broader market apprehension over potential policy changes and rate adjustments from central banks.

(With inputs from agencies.)