The US dollar has been under pressure, reaching year-to-date lows as concerns over tariffs and economic data weigh on sentiment. Traders are reacting to President Donald Trump's tariff announcements, which include potential new duties on lumber, cars, and pharmaceuticals, amid what analysts describe as 'tariff fatigue.' Meanwhile, the Japanese yen has strengthened significantly, gaining 3.2% in February, driven by expectations of further monetary tightening by the Bank of Japan (BOJ) following a rise in Japan's core inflation to a 19-month high. The yen hit an 11-week high against the dollar before retreating slightly. The Federal Reserve's stance on interest rates remains a focus, with recent US economic data, including soft jobless claims and manufacturing output, suggesting a slowing economy. Markets are also assessing geopolitical developments and their potential impact on currency movements.