Dollar steady as zero hour on "Liberation Day" closes in

By Rae Wee

SINGAPORE (Reuters) -The dollar firmed a interaction and different currencies held choky ranges connected Wednesday arsenic traders anxiously awaited details of U.S. President Donald Trump's tariff plans aboriginal successful the time that could acceptable the code for markets successful the adjacent term.

The euro past bought $1.0792 portion sterling steadied astatine $1.2924, some small changed up of a White House Rose Garden announcement scheduled for 2000 GMT that volition apt spot the imposition of melodramatic caller duties that could upend the planetary commercialized system.

Trump has for weeks trumpeted April 2 arsenic "Liberation Day", and White House spokeswoman Karoline Leavitt said reciprocal tariffs connected countries that enforce duties connected U.S. goods would instrumentality effect instantly aft Trump's announcement.

"Markets are going to beryllium jittery up of the announcement," said Carol Kong, a currency strategist astatine Commonwealth Bank of Australia.

"Sentiment is going to beryllium driven by immoderate further tariff headlines and successful crook that volition thrust currency moves up of the large announcement."

Against the yen, the dollar roseate 0.15% to 149.85.

The Australian dollar was level astatine $0.62785, portion the New Zealand dollar was up 0.11% astatine $0.5707.

Details astir the size and scope of the latest commercialized barriers acceptable to travel into unit stay unknown, but the Washington Post reported that Trump's aides are considering a program that would rise duties connected products by astir 20% from astir each country, alternatively than targeting definite countries oregon products.

"While a 20% broad tariff complaint would beryllium theoretically seen arsenic a nett affirmative for the U.S. dollar, the marketplace is astir intently focused connected whether tariffs accelerate the stagflation hazard successful the U.S. economy," said Chris Weston, caput of probe astatine Pepperstone.

Worries astir the interaction of an escalating planetary commercialized warfare connected the world's largest system and a slew of weaker-than-expected U.S. information person stoked recession fears and successful crook undermined the dollar this year.

While the dollar roseate marginally against a handbasket of currencies to 104.25 connected Wednesday, that comes aft the greenback clocked a 3.1% autumn successful March, its worst monthly show since November 2022.

Data connected Tuesday showed U.S. manufacturing contracted successful March, portion a measurement of ostentation astatine the mill gross jumped to the highest level successful astir 3 years amid rising anxiousness implicit tariffs connected imported goods.

"A front-running of tariffs and displacement to minimize import vulnerability is driving up prices, portion persistent uncertainty is crimping underlying request and leaves manufacturers longing for clarity," said economists astatine Wells Fargo successful a note.