Dollar Holds Steady Amid Anticipated U.S. Tariff Moves

The dollar remained stable on Tuesday as investors awaited U.S. President Trump's impending tariff announcements. Markets focused on upcoming U.S. economic reports for additional insights into how trade policy uncertainties are affecting the economy, while European and Asian currencies responded to varying geopolitical and economic factors.

On Tuesday, the dollar showed minimal change as the market braced for new tariffs anticipated from U.S. President Donald Trump. Key economic indicators such as the JOLTS report and ISM manufacturing index were in focus, shedding light on trade policy uncertainty's impact on the economy.

Trump announced fresh tariffs could be imposed on all countries, with a potential rate of 20%. The European market saw a minor dip in the euro-dollar exchange rate following reports of these tariffs, but overall caution prevailed as investors anticipated further economic evaluations.

Geopolitical tensions came into play as the Chinese military conducted drills near Taiwan, while the euro and yen reflected responses to European and Japanese economic conditions. The Australian dollar remained flat after expected central bank rate outcomes, underlining the pervasive market caution amidst unfolding global events.

(With inputs from agencies.)