• The US Dollar Index recovers half of its early losses, which were driven by the US Supreme Court’s verdict against Trump’s tariffs.
• US President Trump announces 15% global tariffs to offset the impact of Supreme Court’s verdict against his tariff policy.
• Weak US Q4 GDP and private sector PMI data have also weighed on the US Dollar.

The US Dollar (USD) claws back half of its early losses after gaining a temporary ground near 97.40 during the European trading session on Monday. During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.2% lower to near 97.60.

Earlier in the day, the US Dollar faced intense selling pressure as investors turned anxious over the United States (US) trade policy outlook, following the Supreme Court (SC) ruling against President Donald Trump's tariff policy.

On Friday, the US SC struck down Trump’s tariff policy, calling them “illegal”, for being backed by invoking the International Emergency Economic Powers Act (IEEPA). The event led to a sharp decline in the appeal of the US Dollar, raising concerns over the credibility of US policies.

In response, US President Trump condemned SC’s ruling against his tariff policy and announced a 15% increase in import duty globally to offset the same.

On the economic data front, slower-than-expected US Q4 Gross Domestic Product (GDP) growth and surprisingly lower S&P Global Purchasing Managers’ Index (PMI) figures of February also acted as key drags on the US Dollar.

The Bureau of Economic Analysis (BEA) reported on Friday that the US GDP growth was 1.4% Year-on-Year (YoY), slower than estimates of 3% and the prior release of 4.4%. The private sector Composite PMI arrived lower at 52.3 from 53.0 in January as both manufacturing and the service sector activity grew moderately.

Going forward, investors will pay close attention to speeches from a slew of Federal Reserve (Fed) officials this week to get fresh cues on the US interest rate outlook.