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The US dollar falls as uncertainty over tariffs weighs on the US Dollar.

The US dollar falls as uncertainty over tariffs weighs on the US Dollar.

The dollar weakened from its three-week high, as global stocks rose slightly on Tuesday after a strong rally on Monday, amid hopes that U.S. president Donald Trump will take a more moderate approach to tariffs.

Stocks on Wall Street fluctuated between modest gains, and losses after a dramatic rise on Monday when Trump said that not all his promises would be fulfilled.

Threatened levies

Some countries could get a break.

Charles Ashley, portfolio manager at Catalyst Funds, said: "There is a bit of paralysis among market participants who don't know how to proceed because they aren't sure what policy will be implemented."

"We are looking for opportunities, but we also want to be prepared to handle the worst-case scenario."

U.S. stock prices lost ground following an initial opening that was higher after the Conference of Consumer Confidence released its reading.

Board fell

In March, sentiment dropped 7.2 points, to 92.9, below the estimated 94.0. This is the latest in a series of readings which have indicated a cooling.

The Dow Jones Industrial Average dropped 16.74 points or 0.05% to 42,566.58, while the S&P 500 gained 0.94 points or 0.02% to 5,768.62, and the Nasdaq Composite advanced 34.72 points or 0.19% to 18,223.91. The MSCI index of global stocks rose by 1.23 points or 0.14% to 852.96. Meanwhile, the pan-European STOXX 600 closed at 0.67% thanks to a survey conducted by the Ifo Institute that revealed a rise in German business morale during March.

In recent days, the stock market has shown signs of bottoming out after being under pressure from the uncertainty surrounding the tariff outlook. This was due to the possibility that the tariffs could slow down the global economy or dent corporate profit.

The dollar index fell by 0.2%, after reaching a high of 104.46, three weeks ago. It had risen to the highest level in the past three weeks.

The euro rose 0.07% to $1.0808.

The dollar fell 0.64% against the Japanese yen to 149.74, while the pound rose 0.32% to 1.2962.

Investors also weighed the possible impact of tariffs on the Federal Reserve’s monetary policy.

Fed Governor Adriana

Kugler said

The central bank's policy is restrictive and well-positioned. However, progress towards the 2% goal has slowed down and the recent increase in the goods inflation data are "unhelpful."

John A. Federal Reserve Bank of New York, President

Williams said

Firms and households "experience heightened uncertainty" regarding the future of the economy.

Raphael, the Atlanta Federal Reserve President, made similar comments.

Bostic said

On Monday, he said that he expects the Fed to only make one 25-basis-point cut this year. The yield on the benchmark 10-year U.S. notes dropped 2.7 basis points, to 4.304%. The yields continued to decline after the sale of $69 Billion in two-year bonds.

The crude prices reversed a previous advance after the U.S. signed separate agreements with Ukraine, Russia and other countries to ensure safe navigation on the Black Sea. They also agreed to ban attacks on energy facilities by either country.

U.S. crude dropped 0.33%, to $68.88 per barrel. Brent was down to $72.90 a barrel on the same day.

(source: Reuters)