Dollar Hovers at 3-Week High

On Tuesday, the dollar index remained stable at approximately 104.3, marking its highest point in three weeks, bolstered by robust economic data. Market attention is currently focused on the potential effects of forthcoming tariffs. Monday's data indicated a surge in U.S. business activity for March, with a significant revival in the service sector compensating for a renewed downturn in manufacturing output. Despite this growth, business expectations for the coming year fell to their second-lowest point since October 2022, as concerns about demand, tariffs, and broader policy shifts under the new administration emerged. President Donald Trump's recent statements have sparked optimism for a more targeted tariff strategy, reducing fears of extensive economic disruption. Nonetheless, his commitment to imposing tariffs on automobiles, pharmaceuticals, and other industries has added to the prevailing market uncertainty. The dollar has maintained its gains against most major currencies, showing the strongest appreciation against the yen.