Dollar shows moderate growth as markets await Trump's tariff announcement
The US dollar is slightly strengthening amid declining business activity in the US, fewer job openings, and market anticipation of Trump's trade tariff announcement.
On the morning of Wednesday, April 2, the US dollar is showing a slight increase against major global currencies, according to Interfax-Ukraine.
The ICE DXY and WSJ Dollar Index are both up 0.01%, reflecting a moderate strengthening of the US currency.
This is happening amid mixed economic data from the US and anticipation of a statement from former President Donald Trump regarding new trade tariffs.
According to a report from the Institute for Supply Management (ISM), the Manufacturing PMI in the US dropped to 49 in March from 50.3 a month earlier.
A reading below 50 indicates a decline in manufacturing activity. Analysts had expected a smaller drop to 49.5.
The US Department of Labor also reported that the number of job openings fell by 194,000 in February — to 7.568 million. This is worse than expert forecasts, which projected a drop to 7.63 million.
Investors are cautiously watching for today's expected statement from Donald Trump regarding trade tariffs.
More aggressive tariff policies could slow down the economy and increase inflationary pressure, which may impact central banks' monetary strategies.
On the currency market, the dollar is trading at $1.0792 per euro and $1.2912 per pound. Against the yen, the rate rose to 149.84. However, Goldman Sachs forecasts this pair will drop to 140 due to increased demand for safe-haven assets.
In early March, the US dollar significantly weakened, reaching its lowest level since December of last year — 105.46 points against a basket of major global currencies. This decline was driven by investor concerns over the potential implementation of new trade tariffs announced by Donald Trump.