The US Dollar weakened against most major currencies as the implementation of US tariffs impacted market sentiment. Equity markets in Asia and Europe experienced declines amid concerns regarding a potential global economic slowdown precipitated by these tariffs. The US Dollar Index (DXY) initially declined, subsequently exhibiting a partial recovery during the European trading session. As of Wednesday, the DXY, which measures the USD’s performance against a basket of six major currencies, traded around 102.30, following a test of the 102.00 level during the Asian session. The tariffs imposed by the US took effect on Wednesday, prompting retaliatory measures from China and Canada, thereby amplifying anxieties surrounding global economic growth. The economic calendar features limited data releases ahead of the publication of the Federal Open Market Committee (FOMC) Minutes from the March Federal Reserve (Fed) meeting. However, the Minutes are anticipated to offer limited new insights, given recent statements by Fed Chairman Jerome Powell indicating a “wait-and-see” approach by the central bank. Concurrently, market participants are increasingly pricing in expectations for further interest rate reductions by the Fed in 2025.
