Trade Uncertainty Supports Dollar, Markets Remain Cautious
The US dollar strengthened on Tuesday (February 24th) as investors digested the latest developments regarding trade policy and statements from Federal Reserve officials. The US Supreme Court's ruling questioning the use of certain tariff instruments briefly pressured the greenback, as markets believed tariff pressures could ease.
However, sentiment shifted after US President Donald Trump announced plans to implement new global tariffs of 15%. This move rekindled concerns about the direction of international trade and its potential impact on global growth, prompting investors to adopt a more defensive stance.
In this context, the dollar found support, strengthening by around 0.2% to $97.85, reflecting its status as a relatively safe haven asset, particularly as uncertainty increases and markets reassess risks. However, its future direction remains highly dependent on the details of the tariff policy implementation and further signals from the Fed regarding the interest rate outlook.
Source: Newsmaker.id