The dollar steadied against major peers on Thursday, continuing its near paralysis of the past two days before more concrete announcements on tariffs from U.S. President Donald Trump.

A spate of central bank policy decisions are also due over the next week, with the Bank of Japan widely expected to raise interest rates at the end of a two-day meeting on Friday.

Rate decisions from the U.S. Federal Reserve and European Central Bank are scheduled for Wednesday and Thursday of next week, respectively.

The dollar index – which measures the currency versus six top rivals, including the euro and yen – was flat at 108.25, following two days of gains of around 0.1%.

On Monday, it tumbled 1.2%, its steepest one-day slide since November 2023, as Trump’s first day in office brought a barrage of executive orders, but none on tariffs.

So far this week, Trump has mooted levies of around 25% on Canada and Mexico and 10% on China from Feb. 1. He also promised duties on European imports, without giving details.

“President Trump has so far taken a less hostile-than-expected approach to China,” amid overall “softer-than-expected policies and tone on tariffs”, said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

At the same time, “we are cautious (that) risk sentiment remains fragile and can quickly turn sour if President Trump strikes a more aggressive tone.”

The Chinese yuan was little changed at 7.2812 per dollar in offshore trading .

Wall Street’s main indexes rose Wednesday, with the S&P 500 hitting an intraday record high thanks to strong Netflix earnings and a rally in tech shares.

Japan’s yen edged up about 0.1% to 156.40 with markets pricing 95% odds of a quarter-point hike on Friday.

The euro was flat at $1.0411. The ECB is widely expected to cut rates by a quarter point next week.

The Canadian dollar held steady at C$1.4386 against the greenback. The Bank of Canada is seen as likely to reduce rates by a quarter point next Wednesday.

The Mexican peso was little changed at 20.47 versus the U.S. currency.

Oil prices dipped in early trade on Thursday, extending losses amid uncertainty over how proposed tariffs by U.S. President Donald Trump on several countries would impact global economic growth and energy demand.

Brent crude futures fell 23 cents, or 0.3%, to $78.79 a barrel at 0135 GMT, while U.S. West Texas Intermediate crude (WTI) eased 18 cents, or 0.2%, to $75.26.

In its previous session, Brent futures settled at $79.00 in a fifth straight day of losses. WTI futures settled at $75.44 in a fourth consecutive day of declines.

Trump has said he would add new tariffs to his sanctions threat against Russia if the country does not make a deal to end its war in Ukraine. He added these could be applied to “other participating countries” as well.

He also vowed to hit the European Union with tariffs, impose 25% tariffs against Canada and Mexico, and said his administration was discussing a 10% punitive duty on China because fentanyl is being sent to the U.S. from there.

Meanwhile, estimates from an extended Reuters poll showed that on average U.S. crude oil stockpiles were expected to have fallen by 1.6 million barrels in the week to Jan. 17.

Gasoline stockpiles were estimated to have risen by 2.3 million barrels last week, and distillate inventories were likely to have gained 300,000 barrels.

The poll was conducted ahead of the American Petroleum Institute industry group’s report and another from the Energy Information Administration at 12:00 p.m. ET (1700 GMT) on Thursday.

European wind shares fell on Tuesday (January 21).

The reports were delayed by a day due to the Martin Luther King Jr. Day federal holiday on Monday.

The dollar was firm and Asia’s stock markets were cautiously positive on Monday as investors waited for an expected flurry of policy announcements in the first hours of Donald Trump’s second presidency and eyed a rate hike in Japan at the end of the week.

Trump takes the oath of office at noon Eastern Time (1700 GMT), and promised a “brand new day of American strength” at a rally on Sunday.

He has stoked expectations he will issue a slew of executive orders right away and, in a reminder of his unpredictability, launched a digital token on Friday, which soared to trade above $70 at one point for a total market value north of $15 billion.

Monday is a U.S. holiday, so the first responses to his inauguration in traditional financial markets may be felt in foreign exchange, where traders are focused on Trump’s tariff policies, and then in Asian trade on Tuesday.

U.S. equity futures were a fraction weaker in the Asian morning on Monday while the dollar, which has rallied since September on strong U.S. data and as Trump’s ultimately successful political campaign gained momentum, held steady.

Japan’s Nikkei (.N225), opens new tab rose 1%.

Last week the S&P 500 (.SPX), opens new tab notched the biggest weekly percentage gain since early November and the Nasdaq (.IXIC), opens new tab its largest since early December on some benign inflation data.

The dollar is up nearly 14% on the euro since September and at $1.0273 is not far from last week’s two-year high. But so much is priced in that some analysts feel a more gradual start to U.S. tariff hikes may draw out some sellers.

“A forceful start to Trump’s new term could rattle nerves and give the dollar more support,” said Corpay currency strategist Peter Dragicevich.

“By contrast, based on what already looks baked in, we think a more measured approach may ease fears and see the dollar lose ground, as it did after Trump took charge in 2017.”

Trump has threatened tariffs of as much as 10% on global imports and 60% on Chinese goods, plus a 25% import surcharge on Canadian and Mexican products, duties that trade experts say would upend trade flows, raise costs and draw retaliation.

The Canadian dollar touched a five-year low of C$1.4486 per dollar on Monday. The Mexican peso hit a 2-1/2 year low of 20.94 per dollar on Friday.

Bitcoin dipped in the early part of the Asian day but remained above $100,000. Benchmark 10-year Treasury yields closed out Friday at 4.61%, up nearly 100 basis points in four months.

CHINA FOCUS

China is in focus as the target of the harshest potential trade levies. Investors lately cheered better-than-expected Chinese growth data and a Friday phone call between Trump and Chinese President Xi Jinping that left both upbeat.

“Basically everyone is waiting for these trade negotiations to begin and see what kind of attitude Xi Jinping takes with Trump,” Ken Peng, head of Asia investment strategy at Citi Wealth told reporters in Singapore at an outlook briefing.

“That relationship between the two gentlemen has become very important as a leading indicator of policies.”

Chinese equity markets rose last week and futures pointed to modest gains for Hong Kong shares at the open.

The yuan is seen likely to slowly adjust to any shifts in trade policy and was marginally firmer at 7.3355 per dollar in offshore trade.

The Australian dollar , sensitive to trade flows and China’s economy, has scraped off five-year lows and, according to Commonwealth Bank strategist Joe Capurso, could test resistance at $0.6322 if Trump’s policy changes fall short of market expectations. It was last at $0.62.

Japan’s yen rallied last week as remarks from Bank of Japan policymakers were taken as hints that a rate cut is likely on Friday.

It was last steady at 156.17 per dollar and rates markets priced about an 80% chance of a 25 basis point rate hike.

In commodities gold hovered at $2,694 an ounce and Brent crude futures ticked higher to $81.21 a barrel.