FX.co ★ US Dollar Halts Selloff

The dollar index edged closer to the 100 mark on Tuesday, marking a pause in the recent downturn that reached a three-year low of 99.6 the day before. This upward movement followed the U.S. Presidential administration's decision to ease certain tariffs. President Trump indicated that he is considering tariff exemptions for auto parts shortly after suspending the retaliatory tariffs on computers and electronics. These actions suggest that the White House may be willing to moderate its aggressive tariff exchanges with major trading partners, following strong reactions from financial markets and business leaders. This has helped alleviate concerns that had sparked a selloff in dollar-denominated securities. Nonetheless, Trump also indicated the potential for future tariffs on copper, semiconductors, electronics, and pharmaceuticals, maintaining a level of uncertainty in the market. Consequently, the dollar index remains over 9% lower on a year-to-date basis.