The U.S. dollar strengthened against the euro and slightly reduced losses against the yen following the release of non-farm payrolls data indicating a higher-than-expected job growth in March. The Labor Department reported an increase of 228,000 jobs last month, compared to a revised uptick of 117,000 in February.

The euro dipped by 0.21% against the dollar, trading at $1.103, while the dollar narrowed its decline versus the yen to 0.29%, at 145.67 yen.

Although the impressive non-farm payrolls figures surpassed predictions, the response of the dollar was tempered due to ongoing concerns about the potential impact of tariffs on the market. China's announcement of a 34% tariff on U.S. goods heightened trade tensions, leading to fears of a global recession and a sell-off in stock markets worldwide.

According to Uto Shinohara, senior investment strategist at Mesirow Currency Management, the fluctuation in foreign exchange markets is mostly influenced by tariff-related factors, impacting currencies like the Australian dollar as a risk currency and the Swiss franc as a safe-haven choice. Despite the positive employment report, the uncertainty surrounding tariff negotiations remains a key driver of market dynamics.