Dollar Stays Weak Ahead Of Fed Policy

(RTTNews) - The U.S. dollar turned in a weak performance against most of its major counterparts on Tuesday as traders tracked the developments on the geopolitical front, digested a slew of economic data, and looked ahead to monetary policy meetings of major central banks, including the Federal Reserve.

U.S. President Donald Trump said he would be imposing both broad reciprocal tariffs and additional sector-specific tariffs on April 2.

On the geopolitical front, Israel has launched a wave of air attacks across the Gaza Strip, breaking ceasefire and reigniting hostilities after stalled hostage negotiations.

The air raids in the early hours of Tuesday reportedly killed more than 320 people, including many women and children.

Israeli Prime Minister Benjamin Netanyahu said he had ordered the attacks due to a lack of progress in talks to extend the ceasefire and secure the release of remaining captives taken by Hamas in October 2023. The White House has voiced its support for Israel's actions.

In U.S. economic news, data from the Commerce Department said new residential construction in the U.S. spiked by 11.2% to an annual rate of 1.501 million in February, after plunging by 11.5% to a revised rate of 1.350 million in January.

A report from the Labor Department showed import prices climbed by 0.4% in February, while export prices inched up by 0.1% in the month.

The Federal Reserve released a report on Tuesday showing industrial production in the U.S. increased by much more than expected in the month of January, climbing by 0.7% in the month after climbing by a downwardly revised 0.3% in January.

Economists had expected industrial production to rise by 0.2% compared to the 0.5% growth originally reported for the previous month.

The dollar index, which climbed to 103.68 after some encouraging U.S. economic data, pared gains and dropped to 103.20 later on in the session. The index was last seen at 103.27, down 0.1% from previous close.

Against the Euro, the dollar weakened to 1.0946, after having firmed to 1.0895 earlier in the session. The dollar eased marginally against British Pound at 1.3003.

Against the Japanese currency, the dollar gained slightly, fetching 149.30 yen a unit. The dollar stayed firm against the Aussie, trading at 0.6361.

The Swiss franc strengthened against the greenback, firming to 0.8769 a dollar. Against the Loonie, the dollar weakened to C$ 1.4300 as hot Canadian inflation data raised concerns the Bank of Canada might delay easing its monetary policy.