Dollar is steady near three-year low

Reuters reports the greenback is steady on Tuesday, but remains near the three-year low against the euro and the six-month low against the yen reached last week.

The dollar index was also close to a three-year low. It fell more than 4% in April, set for the steepest monthly decline since November 2022, the news agency says.

The markets are focused on Donald Trump's ever-changing trade policies. Last weekend, he removed duties on smartphones and other electronics from China. However, comments by the US president suggest that such a pause is likely to be short-time, Reuters reports.

Imposition and then postponement of tariffs on US imports added to investor uncertainty. Kieran Williams of InTouch Capital Markets believes this is fuelling a slow but steady outflow from dollar assets.

Federal Reserve Governor Christopher Waller thinks Trump’s actions are a shock to the US economy and could force the central bank to cut rates despite high inflation.