In Tokyo, the U.S. dollar is close to a five-month low against the euro and other major currencies as investors are concerned about the possible economic consequences of increasing global trade tensions. President Donald Trump's tariff strategies, which could lead to a wider economic slowdown, have weakened the dollar along with pessimistic sentiment surveys.

The dollar index, compared to six significant peers, has fallen about 6% from a peak seen in mid-January, standing at 103.44 after hitting a five-month low of 103.21 the previous Tuesday. The recent retail sales data showing a modest rebound in February didn’t provide much support to the U.S. currency.

The euro is trading around $1.0919 awaiting Germany’s anticipated vote on a substantial stimulus package, near its highest level since October. The package includes a 500 billion euro fund for infrastructure and changes to borrowing rules to enhance defense and revive growth in Germany, the largest economy in Europe.

This week, the U.S. Federal Reserve, Bank of Japan, and Bank of England are expected to maintain their interest rates at meetings, drawing market attention towards any future guidance provided by officials. The Federal Reserve's new economic projections will offer insight into how policymakers view the potential impact of the Trump administration's policies on the economy.

Traders are currently pricing in around 60 basis points of Fed cuts for the remainder of the year, reflecting cautious market sentiment. The Bank of Japan is expected to evaluate the risks posed by the escalating U.S. trade conflict to Japan's economy in determining the timing of their next rate increase.