Dollar Gains Amid Trade Optimism and Varied Central Bank Moves

The U.S. dollar experienced a weekly rise against major international currencies like the Swiss franc, yen, and euro. This came after a trade deal between the United States and the United Kingdom fueled optimism about looming U.S.-China negotiations set to start in Switzerland over the weekend.

The trade deal, announced by President Donald Trump, keeps a 10% baseline tariff on UK goods while reducing high duties on vehicle imports, signaling potential advances in trade relationships. According to Matthew Weller from StoneX, there is growing optimism about U.S.-China trade talks potentially signaling an end to harsh trade wars and tariffs.

Central banks showcased divergent strategies this week. The Federal Reserve retained interest rates, whereas the Bank of England slashed rates. Meanwhile, Sweden and Norway's central banks made no changes. Despite these variances, the dollar declined against several Asian currencies, notably with the Taiwanese dollar's unexpected surge. Furthermore, Bitcoin's value soared past $100,000, reflecting a surge in market risk-taking interest.

(With inputs from agencies.)