FX.co ★ Dollar Remains Under Pressure

The dollar index dropped to approximately 99.6 on Tuesday, experiencing its third consecutive day of decline due to ongoing trade-related uncertainties affecting investor sentiment. President Donald Trump stated that he does not plan to have discussions with Chinese President Xi Jinping this week. However, he indicated a possible reduction in the hefty 145% tariffs on Chinese imports. In a further move, Trump declared a 100% tariff on foreign-produced films and suggested that tariffs on pharmaceuticals might be introduced within the next two weeks. Investors are now focusing on the Federal Reserve's upcoming policy decision, where it is anticipated that interest rates will remain unchanged. Market participants will be paying close attention to Federal Reserve Chair Jerome Powell's remarks, especially given the increasing political pressure from Trump to lower rates. Despite the dollar's overall weakness, it managed to recover somewhat against several Asian currencies, notably the Taiwanese dollar and Malaysian ringgit, following selling pressure in recent sessions.