FX.co ★ US Dollar Rebounds After Tariff Relief

The dollar index made a recovery to surpass the 103 threshold on Wednesday, bouncing back from the six-month low of 102 reached on April 3rd. This occurred following President Trump's announcement last week of a 90-day suspension on the extensive reciprocal tariff package for countries that have yet to retaliate. This decision added to the ongoing uncertainty regarding U.S. economic policy due to the frequently changing measures. However, it sparked a significant inflow into U.S. equities, as companies with foreign supply chains are less likely to be adversely affected by tariffs. Nonetheless, the President increased tariffs on China to 125% after China's earlier retaliatory actions, and Europe might be excluded from the pause as it revealed plans for countermeasures against the U.S. Although the prospect of lower-than-expected tariffs lent support to the dollar throughout the week, the unpredictable economic policy of the current administration maintained recession concerns among some market participants.