01.04.202518:17:00UTC+00U.S. Dollar Drops Ahead Of Trump's Tariffs

The U.S. dollar fell against its major counterparts in the New York session on Tuesday after weak economic data, while investors awaited more details on U.S. President Donald Trump's reciprocal tariff announcements set to be announced on Wednesday.

Data from the Institute for Supply Management showed activity in the U.S. manufacturing sector contracted in March after two consecutive months of expansion.

The ISM said its manufacturing PMI dipped to 49.0 in March from 50.3 in February, with a reading below 50 indicating contraction. Economists had expected the index to edge down to 49.5.

Trump is expected to unveil his long-awaited proposals for reciprocal tariffs on Wednesday.

"Wednesday, it will be Liberation Day in America, as President Trump has so proudly dubbed it," White House press secretary Karoline Leavitt said.

"The President will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades. He's doing this in the best interest of the American worker.

The greenback retreated to 1.0812 against the euro and 1.2932 against the pound, off its early multi-day highs of 1.0777 and 1.2878, respectively. The currency is poised to challenge support around 1.10 against the euro and 1.31 against the pound.

The greenback fell to 148.97 against the yen and 0.8817 against the franc. The currency is seen finding support around 144.00 against the yen and 0.86 against the franc.

The greenback weakened to 0.6282 against the aussie and 0.5704 against the kiwi. The currency is likely to locate support around 0.65 against the aussie and 0.60 against the kiwi.

The greenback dropped to 1.4305 against the loonie, from an early multi-week high of 1.4415. If the currency falls further, it is likely to test support around the 1.37 region.