Singapore - The dollar strengthened slightly, and other currencies remained relatively stable on Wednesday as traders awaited further information regarding U.S. President Donald Trump's tariff plans. The announcement, expected later in the day, could have a significant impact on markets in the near future.

The euro was trading at $1.0792, while the pound held steady at $1.2924, showing minimal movement before a White House announcement scheduled for 2000 GMT. This announcement was anticipated to introduce new tariffs that may disrupt global trade.

President Trump had referred to April 2 as "Liberation Day" and suggested that reciprocal tariffs would be implemented immediately after the announcement. Currency strategist Carol Kong noted that market sentiment would be influenced by any tariff-related news, affecting currency movements leading up to the announcement.

The dollar gained 0.15% against the yen, reaching 149.85. The Australian dollar remained unchanged at $0.62785, and the New Zealand dollar saw a 0.11% increase to $0.5707.

While specific details about the upcoming trade barriers were still unknown, there were considerations of imposing a blanket tariff rate of around 20% on products from various countries. This move could potentially impact the U.S. economy, with concerns over stagflation risks.

Fears of a global trade war, together with weaker-than-expected U.S. data, raised worries of a potential recession, thereby undermining the dollar's performance. Despite a marginal rise to 104.25 against a basket of currencies on Wednesday, the dollar had experienced a 3.1% decline in March, marking its worst monthly performance since November 2022.

Recent data showing a contraction in U.S. manufacturing in March and a surge in inflation levels due to import tariffs added to economic uncertainties. This situation prompted economists at Wells Fargo to note that price increases, import exposure minimization, and prevailing uncertainty were affecting demand and leaving manufacturers seeking clarity.