Dollar index loses momentum from 3-week high

The dollar index lost momentum on Thursday after reclaiming 104 mark in the previous session as US President Donald Trump signed an order late Wednesday imposing a 25% tariff on auto imports, effective April 2, with collections starting the next day. DXY index is losing gains from three-week high and is seen quoting at the moment at 104.09, down 0.12% on the day. US President Donald Trump further threatened in his latest post that, "if the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had. Meanwhile, Minneapolis Federal Reserve Bank President Neel Kashkari on Wednesday said he's uncertain about the effect of President Donald Trump's tariffs on the U.S. economy, with the possibility that they could push up prices arguing for higher interest rates, and the chance that they could slow economic growth calling for reducing borrowing costs. Investors are now closely monitoring upcoming US final Q4 Gross Domestic Product (GDP) and weekly jobless claims due later in the global day and Fridays PCE data for further cues.

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