The dollar was trading steady as investors weigh the latest U.S. tariff developments and look ahead to the Federal Reserve’s next interest-rate decision.
President Donald Trump on Sunday announced a 100% tariff on all foreign movies. This represents a “notable escalation in the trade saga” that was previously confined to goods but appears to be broadening to include services, Pepperstone strategist Michael Brown said in a note.
Meanwhile, the Fed will likely emphasize growing risks to the economic outlook at Wednesday’s meeting, he said.
It could also note the increasing likelihood of its dual mandate of maximum employment and stable prices coming into conflict while reiterating a “wait and see approach.” The DXY dollar index traded flat at 99.8040.