Dollar Slightly Down as Investors Digest Economic Data and Fed Signals
The dollar index edged lower to 104.1 on Tuesday but remained near a three-week high as investors weighed economic data, Fed commentary, and potential tariff impacts.
The latest CB consumer confidence survey showed morale fell sharply for the fourth straight month in March, with future expectations hitting a 12-year low and financial outlooks at their weakest since July 2022. Meanwhile, Monday’s data indicated U.S. business activity strengthened in March, as a sharp rebound in services offset renewed weakness in manufacturing.
On monetary policy, Fed Governor Kugler acknowledged that policy remains restrictive but warned that progress toward the 2% inflation target has slowed, calling the recent rise in goods inflation "unhelpful."
Elsewhere, recent remarks from President Trump raised hopes for a more targeted tariff strategy, easing concerns about widespread economic disruption.
Source: Trading Economics
