Dollar Surges as Trump Boosts Market Confidence with Tariff Delay
The U.S. dollar strengthened after President Donald Trump delayed tariffs on the European Union, providing investors with confidence. A sharp fall in Japan's long-dated bond yields put pressure on the yen. The dollar benefited from Trump's tax-cut bill debate and recent sovereign credit rating concerns.
The dollar rallied on Tuesday after U.S. President Donald Trump's decision to delay tariff hikes on the European Union, offering solace to investors. This decision contrasted with the pressure on the yen, which faced difficulties due to a sharp decline in Japan's long-term bond yields.
While markets in the U.S. and UK were closed for a public holiday, traders responded to Sunday's announcement with fresh vigor on Tuesday. The dollar index rose by approximately 0.4%, attributed to Trump's weekend retreat and the market's response to his actions.
The dollar's strength was marked against the yen as Japan's government bond yields fell sharply. Market focus remains on U.S. Senate debates over Trump's tax-cut bill, with potential impacts on the national debt, following a recent downgrade of the U.S. credit rating by Moody's.
(With inputs from agencies.)
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