(Updates in afternoon trading in Europe)

By Harry Robertson and Tom Westbrook

LONDON/SINGAPORE, March 25 (Reuters) - The dollar fell

slightly from an almost three-week high on Tuesday after rising

earlier in the session as currencies continued to waver on the

back of uncertainty about tariffs.

U.S. President Donald Trump said not all of his threatened

levies would be imposed on April 2 and some countries might get

breaks, which helped the mood on Wall Street overnight by

soothing some fears about a possible slowdown in U.S. growth.

A strong services component in S&P Global's flash U.S. PMI

figures on Monday alongside a rotation back into Wall Street

stocks helped push up U.S. bond yields, which supported the

dollar.

Yet the U.S. dollar index gave up its gains in

European trading and was last down 0.22% to 104.07, having

earlier reached 104.46, the highest since March 5.

Meanwhile the euro reversed an earlier fall to

a three-week low and was last up 0.16% at $1.0817.

Brent Donnelly, president of analytics firm Spectra

Markets, said uncertainty remains high.

"The EUR/USD trade has petered out, as have the massive move

in rate differentials and relative equity performance," he said.

"The view that tariffs are unambiguously bullish (for the)

U.S. dollar has been challenged by the price action in 2025, and

so even when we get the information on what tariffs look like

next week, it will be hard to know what we are supposed to do."

The dollar has rebounded somewhat after falling to a

five-month low in mid-March as Trump's stop-start tariff

campaigns dented company and investor confidence and darkened

the outlook for U.S. growth.

CONSUMER CONFIDENCE

Francesco Pesole, FX strategist at lender ING, said U.S.

consumer confidence data due later on Tuesday would be key to

the direction of the dollar.

"We're heading into big tariff announcements by the

U.S., and the Fed last week signalled there's probably no rush

to cut rates," he said. "But what really has been holding back

the dollar is...that consumer sentiment story deteriorating very

fast."

The dollar fell 0.4% to 150.09 Japanese yen, having

pulled overnight above 150. It rose to a three-week

high of 150.92 yen in the Asia morning.

Investors expect the Bank of Japan to go slow on monetary

tightening that could bolster the yen. Minutes of the BOJ's

January meeting released on Tuesday showed policymakers

discussed the pace of raising interest rates.

Last week, the BOJ kept interest rates steady and warned of

heightening global economic uncertainty. But many analysts still

expect the BOJ's next move to come in the third quarter, most

likely in July.

The Australian dollar climbed after the government

launched fresh tax cuts on Tuesday and announced other

cost-of-living relief in a major push to win back disgruntled

voters. It was last up 0.51% at $0.6319.

Sterling rose 0.22% to $1.2951 as traders

looked towards Wednesday's spring statement in which British

finance minister Rachel Reeves is expected to cut government

spending to meet fiscal rules.

Bitcoin hit a two-week high of $88,771 overnight

but was last 0.8% lower around $87,209.