The US Dollar Index (DXY), which tracks the US dollar against a basket of six major currencies, traded near the 103.00 region during Tuesday's (09/04) session. Momentum picked up after upbeat labor market data last week helped the index bounce off recent lows. Investors cheered remarks from US Trade Representative (USTR) Jamieson Greer, who told the Senate Finance Committee that the US is engaged in tariff discussions with nearly 50 countries.

However, selling pressure resumed after the US confirmed additional tariffs will take effect on April 9 against China.

Daily market digest: US dollar has mixed session on trade talks

USTR Greer told lawmakers that the US is actively working with dozens of countries on tariff negotiations although US tariffs are expected to start soon.

Optimism over trade momentum and hints of expanded market access for agriculture supported sentiment, although no clear timetable was given. Despite engagement from some trading partners, Greer noted that China remains resistant to negotiations, widening the rift between Washington and Beijing.

In line with that, Trump Press Secretary Karoline Leavitt said that in retaliation for China imposing 34% tariffs on US exports, the US would add another 50% tariffs on Chinese goods.

Finance Secretary Scott Bessent confirmed that President Trump would participate directly in the upcoming talks, while European Commission President von der Leyen warned of potential retaliation if no resolution is reached. (Newsmaker23)

Source: FXstreet