Dollar Steady Despite Tariff Tensions Amidst Market Optimism

The U.S. dollar maintained its stability on Thursday after peaking at a two-week high in relation to its major peers, despite fresh tariff tensions from President Donald Trump. However, the Brazilian real declined significantly following a threatened 50% levy from the U.S.

Francesco Pesole of ING mentioned uncertainty prevails among markets about Trump's tariff strategies, but the consensus is he might avoid imposing new tariffs on China, potentially reaching agreements with the EU. As a result, there is a renewed appetite for riskier assets with more severe tariff impacts seeming less likely.

This renewed optimism helped Nvidia reach an unprecedented $4 trillion valuation and drove Bitcoin close to a record high, bolstered by Federal Reserve minutes suggesting that interest rate cuts might be appropriate later this year.

(With inputs from agencies.)