Dollar Strengthens Amid Easing Trade Tensions with China
The U.S. dollar advanced against major currencies as President Trump softened his stance on trade tensions with China. This follows a prior session's sell-off sparked by Trump's tariff threats. The currency's rise is attributed to the perceived easing of trade tensions, which could impact upcoming Federal Reserve decisions.
The U.S. dollar gained ground against the euro and yen on Monday, buoyed by a shift in rhetoric from U.S. President Donald Trump. Following aggressive tariff threats, Trump's softer tone lowered trade tension anxieties, contributing to the dollar's recovery across international markets.
The dollar index, which monitors the U.S. currency against major peers, rose 0.2% to 99.25. Analysts believe the dollar remains a primary safe haven amid global currency developments. The potential de-escalation of trade conflicts may affect Federal Reserve's interest rate decisions in the upcoming months.
European and Asian markets had mixed responses to international and domestic political events. Meanwhile, in the cryptocurrency sector, a turbulent week of liquidations reversed slightly on Monday, with minor gains across key digital currencies like Bitcoin and Ethereum.
(With inputs from agencies.)
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