The reasons for the dollar's rise this week

It seems that the markets will wait for Trump's daily statements to find a catalyst for them, even if the issued statements are rather calm.

The dollar index rose near the 108.00 levels on Tuesday after rising from the levels of almost 107.00, rebounding from 6-week lows as President Donald Trump escalated his threats of tariffs.

Trump announced plans to impose tariffs on imported electronic chips, medicines and steel, with the aim of encouraging domestic production of these goods.

His comments on Monday came in response to a question about reports that incoming Treasury Secretary Scott Besant prefers a global tariff rate of 2.5%, but Trump said he wants to enact comprehensive tariffs much higher than 2.5%, and the market's focus this week is likely to remain on developments from the Trump administration.

Traders are also becoming more cautious as the February first deadline for the first round of tariffs, as previously set by the president, approaches.

Meanwhile, the Federal Reserve on Tuesday began its two-day policy meeting, with expectations that it will keep interest rates steady despite Trump's calls for an immediate rate cut.

Fed Chairman Jerome Powell is expected to say that officials are pleased with the progress made in inflation, which is why they are keeping interest rates unchanged after a series of cuts.