The U.S. dollar was steady on Wednesday but poised for its weakest monthly performance since November 2022 as erratic U.S. trade policies under President Donald Trump left the greenback vulnerable while boosting the euro, yen and Swiss franc.

The White House has retreated several times on the sweeping tariffs Trump unveiled in early April that led to a global stock market meltdown and prompted investors to flee the normally safe-haven U.S. dollar and Treasury debt.

Trump signed a pair of orders on Tuesday to soften the blow of his auto tariffs with a mix of credits and relief from other levies on materials.

Trump's trade team also touted its first deal with a foreign trading partner, while U.S. Treasury Secretary Scott Bessent said the administration is making progress on tariff negotiations, noting that deals are forthcoming for India and South Korea.

The developments helped ease some tensions as investors and companies worry about the economic fallout of the tariffs, with indications the duties will weigh on growth and could drive up inflation and unemployment.

"We estimate 'peak tariff' has passed," said Kristina Clifton, an economist at the Commonwealth Bank of Australia (OTC:CMWAY). "However, damage has been done to confidence, the U.S. economy and the global trading system."

The euro was steady at $1.1387 after dropping 0.33% in the previous session. Still, the common currency has benefited from investors fleeing U.S. assets and is up 5.26% in April, set for best monthly performance since November 2022.

The dollar index, which measures the U.S. currency against six other units, was last at 99.219, not far from the three year low it touched last week. The index is down 4.76% this month, its weakest performance since November 2022.

Source: investing.com