Dollar remains vulnerable to shifts in US president's trade policy

The dollar held steady on Wednesday, but posted its weakest monthly performance since November 2022. The uncertain trade policy of US President Donald Trump continues to weigh on the currency, Reuters reports.

The White House has repeatedly reconsidered its decisions to impose import duties, triggering a global stock market meltdown, the agency notes.

According to US Treasury Secretary Scott Bessent, the administration is making progress in tariff negotiations. The official says that agreements with India and South Korea will be reached in the near future.

Additionally, market participants remain concerned about the impact of US trade policy after data showed an economic slowdown. Job openings decreased in March, while the Conference Board's consumer confidence index dropped to a nearly five-year low in April.

According to Julius Baer experts, Donald Trump's import tariffs are increasing recession risks in the United States and driving inflation higher.