Dollar firmed slightly ahead of Donald Trump's announcement of sweeping tariffs

Reuters reports that the US dollar strengthened slightly on Wednesday as traders were awaiting details of Donald Trump’s tariff plans. 

According to White House spokeswoman Karoline Leavitt, reciprocal duties on countries that levy US goods will go into effect immediately after Trump's announcement on April 2.

The details of scale and size of new tariffs remain unknown. However, the Washington Post informed that the US president’s aides are considering raising import duties by about 20% for goods from nearly every country.

Concerns about escalating trade tensions and a series of weak US economic data have added to recession fears and undermined the greenback this year, Reuters says. 

As reported by the news agency, the dollar posted a 3.1% fall in March, the worst monthly performance since November 2022. Tuesday’s data showed manufacturing in the US contracted last month. In addition, the country's producer price inflation jumped to the highest level in nearly three years amid growing concern over import tariffs, Reuters says.