Bitcoin Surges Amid Global Market Fluctuations
The U.S. dollar declined from a recent high following President Trump's tariff announcements. The Brazilian real dropped due to a proposed 50% levy, while U.S. Treasury yields fell. Investors turned towards riskier assets, boosting Nvidia's valuation and Bitcoin, which reached near-record levels. Fed minutes indicated potential interest rate cuts.
The global financial markets witnessed a further decline in the U.S. dollar, retreating from a two-week high on Thursday. This movement followed President Donald Trump's latest tariff announcements, which affected Brazil most notably, causing the real to plummet due to a threatened 50% levy.
The decline in the dollar was exacerbated by a drop in U.S. Treasury yields after a robust 10-year note auction, easing concerns about the 'Sell America' trend. This shift in sentiment encouraged investors to pursue riskier assets, propelling Nvidia's stock valuation to unprecedented heights and pushing Bitcoin towards an all-time high just under $112,000.
The Federal Reserve's minutes from its last meeting offered additional optimism, with most members advocating for interest rate cuts later in the year. Meanwhile, the dollar index fell further, despite initial gains. In contrast to Brazil, the impact of tariffs was minimal elsewhere, yet negotiations with trade partners like India and the EU are progressing, offering potential market reprieves.
(With inputs from agencies.)
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