Market
Lookout
Q1

On Tuesday, the U.S. dollar dropped against the Japanese yen and remained steady against the euro as traders reacted cautiously to uncertainty over upcoming U.S. tariffs. This followed a rise in the dollar on Monday, fueled by speculation that the tariffs might be applied more leniently.

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Market sentiment shifted to a more defensive stance after Monday’s optimism-driven movement, which some viewed as largely influenced by media reports. President Trump indicated that not all proposed tariffs would take effect on April 2 and that certain countries might receive exemptions.

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Concerns remain that the tariffs could slow economic growth and push up prices. However, the dollar has shown signs of stabilizing as investors reconsider the potential fallout.

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Stronger-than-expected data from the U.S. services sector on Monday helped ease worries about a possible economic slowdown. However, consumer confidence figures released Tuesday showed a continued decline for the fourth straight month in March, with households reporting the bleakest outlook in 12 years.

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Analysts note that initial hopes for tax cuts and deregulation have shifted to concerns over government spending cuts and trade policies, leading to uncertainty about household finances and jobs, which could weigh on consumer spending.

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In response, the dollar slid 0.58% to 149.81 yen.