The US dollar rises with some slight declines of the Japanese yen
DXY
The US Dollar Index continued its short-term upward momentum on Tuesday for the fifth day in a row, after some optimistic statements from US President Donald Trump, Dollar optimists regained their momentum and rushed to buy the currency after stronger-than-expected US services data, which eased concerns about slowing economic growth, and also led to a strong rise in US yields.
The preliminary reading of the US services Purchasing Managers 'Survey for March exceeded expectations by 54.3 points, indicating growth in the sector's activity, and the dollar also supports investors' appetite to buy the currency to rebalance their portfolios before the end of the month and the end of the first quarter of the year.
US President Donald Trump also indicated on Monday that not all of the tariffs he has threatened to impose will be imposed on the second of April, and that some countries may receive exemptions.
He also warned that car duties would be imposed soon, imposing a secondary duty of 25% on any country that buys oil or gas from Venezuela.
The Consumer Confidence Report for March, which is expected to be released today, may cause fluctuations at the time of its release on the US dollar.
However, what is clouding the markets is what is happening with the tariffs, whether applied, proposed or on the way, and whether they will affect economic growth in the United States.
USD/JPY
On the other hand, the US dollar hit a three-week high against the Japanese yen on Tuesday, maintaining its stability in general after the release of some strong US services sector data and cautious optimism about tariffs.
It can be argued that the sensitivity of the yen to tariffs may be significant, so the current yen decline against the backdrop of rising yields seems logical.
Investors also expect that the Bank of Japan will slow down in tightening monetary policy, which may support the yen, the minutes of the Bank of Japan's January meeting released on Tuesday showed that policymakers discussed the pace of raising interest rates.
But many analysts still expect that such a move by the Bank of Japan will be in the third quarter and most likely next July.
