The euro remained mostly unchanged on Wednesday, while the dollar made a slight recovery after recent declines. Traders were assessing how Europe would respond to new tariffs introduced by U.S. President Donald Trump and positioning themselves ahead of the upcoming consumer price index data.

Trump’s increased tariffs on Wednesday on steel and aluminum took effect, representing the latest step in his effort to reshape the U.S. trade relations with both allies and adversaries.

The dollar index that gauges the greenback versus its major pairs dropped 0.2% to 103.54.

EUR/USD slumped by 0.1% to $1.0911.

At the same time, markets were focused on the U.S. decision to restart intelligence sharing and military assistance to Ukraine, following Kyiv's agreement to back the Trump administration's proposal for a 30-day ceasefire with Russia.

The Kremlin has not officially responded, but Russian Foreign Minister Sergei Lavrov said in an interview that Russia would avoid any compromises in a peace deal that could endanger lives.

The dollar has been hit hard by increasing concerns over a potential U.S. recession, particularly following a series of disappointing consumer sentiment and labor market reports in recent weeks.