Dollar Surges Amidst Tariff Tensions: A Weekly Market Review

This week marks a significant surge for the U.S. dollar, achieving its strongest performance in nearly three years against key global currencies. This momentum continued into Friday following President Donald Trump's imposition of new tariffs on several major trade partners.

The impact of these tariffs was immediately felt as the Swiss franc touched its weakest level in six weeks, while the Canadian dollar faced its seventh straight weekly loss. The Japanese yen also saw substantial losses this week, influenced by the Bank of Japan's reluctance to increase interest rates.

Despite President Trump's pressure on Chair Jerome Powell, the Federal Reserve has maintained its stance on interest rates, setting a cautious tone for investors while the dollar index climbed 2.4% this week. Analysts remain watchful as new trade developments unfold.

(With inputs from agencies.)