The US dollar rose on Tuesday but is having difficulty maintaining a strong recovery, as investors remain cautious amid uncertainty about US tariffs.
Optimism that the United States can reach trade agreements with other countries is slightly supported by the dollar.
The currency may also benefit from month-end inflows, as investors rebalance their portfolios.
However, the US dollar is still undesirable, as the narrative of the American exception has completely disappeared, as the dollar is the most vulnerable asset to the ongoing trade uncertainty.
US Treasury Secretary Besant also said in an interview on Monday that the easing of tariffs is the responsibility of China, and this is among a series of conflicting statements about progress in trade talks between the world's two largest economies.
While US President Donald Trump insists progress has been made and that he has spoken with Chinese President Xi Jinping, Beijing has denied the allegations.
This confusion gave investors an additional reason to sell the dollar last period.
On the other hand, this week will be full of important data, as the jobs report to be released on Friday is pivotal for the markets, and it is also scheduled before the release of preliminary growth figures for the first quarter and core Personal Consumption Expenditures data, which is the Fed's preferred indicator for measuring inflation.
