The US dollar is seen maintaining a stable trend following positive economic data and investors remain cautious amid renewed turmoil over President Donald Trump's tariffs.
At 9.15 am, the US Dollar Index (DXY) was at 97.816 points, down 0.07% since it opened in early trading on Wednesday in the Asian session.
The USD received some support after several economic indicators performed better than expected.
ADP data reported an increase of 12.8 thousand private sector jobs last week, beating the previous reading. At the same time, the Conference Board's consumer confidence index for February recorded a reading of 91.2, higher than market expectations.
This development signals that domestic demand and the labor market are still showing resilience.
Following the data, US Treasury bond yields rose moderately, especially in short-term maturities that are sensitive to monetary policy.
The increase in the jobs figure also weakened the argument of Fed officials who tend to be dovish, thus reducing pressure for a rate cut in the near future.
However, the dollar's outlook remains uncertain as Donald Trump's new tariff regime takes effect.
The move comes after the Supreme Court ruled that the use of a 1977 emergency law to impose tariffs exceeded the president's authority.
In response, Trump announced a temporary tariff hike from 10% to 15% on imports from all countries. The move raised questions among trading partners about the reliability of previously signed trade agreements.
In Europe, the European Union Parliament postponed a vote on a trade deal with the United States following the imposition of new import taxes. The decision reflects growing uncertainty in the global trade landscape.
The uncertainty comes as markets are also clouded by doubts about the sustainability of large investments in the artificial intelligence sector and the fundamental strength of the US economy, after growth data last week showed slower-than-expected momentum.
