FX.co ★ Dollar on Track for Big Quarterly Loss

The dollar index hovered around 104 on Monday as traders grappled with ongoing trade war tensions and increasing apprehension about its potential economic repercussions. Concerns about the trade war's effects on the global economy continue to loom large. This is compounded by the impending implementation of new reciprocal tariffs on U.S. imports, such as a 25% duty on automobiles, scheduled to commence this week. There's still uncertainty over the exact scope of these tariffs; President Trump has indicated they would broadly apply to all nations, although reports suggest he is urging his advisors to pursue a more assertive trade policy. Simultaneously, traders are preparing for critical economic indicators, including the upcoming jobs report and ISM Purchasing Managers' Indexes (PMIs) which are expected to offer more clarity on labor market conditions and the performance of the private sector. The dollar index experienced a decline of over 3% in March and is down 4% for the quarter.