Powell stated "not in a hurry to cut interest rates", the US dollar rebounded strongly with its best single-day gain in three weeks.

The US dollar strengthened against major currencies on Friday, recording its best single-day performance in three weeks, as the Federal Reserve indicated a reluctance to cut interest rates. The risk-sensitive Australian and New Zealand dollars remained on the defensive after a sharp drop on Thursday, as concerns about the impact of US President Trump's aggressive global trade tariffs weighed on market sentiment. As of the time of writing, the US dollar index against a basket of six currencies was stable at 103.81, rising 0.36% on Thursday. The US dollar index fell to a five-month low of 103.19 this week, as hopes for President Trump's expansionary policies gave way to concerns that his global trade war could lead to a recession in the US. Federal Reserve policymakers on Wednesday kept interest rates unchanged and hinted at two 25 basis point rate cuts later this year, in line with the median estimate three months ago. Fed Chair Powell said, "We won't rush into action." He emphasized the challenges policymakers face in dealing with Trump's unpredictable tariffs and their potential impact on the domestic economy. A new round of reciprocal tariffs is expected to begin on April 2nd. "We are seeing some signs of a possible reversal in the US dollar... with gold prices approaching recent consolidation highs," said Chris Weston, Research Director at Pepperstone. "As we head into the April 2 announcement on reciprocal tariffs from Trump, market participants are reducing their short US dollar positions and seeking to establish more neutral positions, increasing the risk." The euro, which has the largest weight in the US dollar index, remained largely flat after falling 0.45% on Thursday, trading at $1.0854. "The market seems to have lost some confidence in the euro breaking above 1.1000 against the dollar, and spot rates seem to be breaking out of the 1.0950-1.0800 range," Weston said.