The dollar index continues to steady around six month low on Thursday amid persistent concerns of US tariff implication on US economy. US President Donald Trump ramped up his trade war against China while temporarily pausing tariffs on many other countries. He announced a 90-day pause on new tariffs for most countries but raised tariffs on China to 125%, continuing to keep investor sentiments on the edge. The minutes of US Fed’s March meeting stated that the VIX—a forward-looking measure of near-term equity market volatility—rose, on net, following disappointing economic data releases and a number of tariff-related developments, and ended the period somewhat above its median over the past few decades.
Meanwhile, the Federal Reserve's latest monetary policy revealed officials believe it remains appropriate to take a "cautious approach" to future interest rate decisions. The minutes also reiterated that the central bank "well positioned" to wait for more clarity on the outlook for inflation and economic activity. The minutes also noted that dollar depreciated against most major currencies, although currencies perceived as more sensitive to higher U.S. tariff rates, such as the Canadian dollar and those in emerging Asia, were relatively little changed. Currently, the dollar index that measures the greenback against a basket of currencies is quoting at 102.09, down around half a percent on the day. US CPI inflation data due later in the global day are awaited for further cues.