Dollar Surges Amid US-UK Trade Deal Breakthrough

The U.S. dollar gained strength against both the yen and the Swiss franc on Thursday, thanks to a calming effect from the announcement of a trade agreement between the United States and Britain. U.S. President Donald Trump heralded the deal as a 'breakthrough' during a press conference, highlighting the potential it holds as a blueprint for future trade agreements with other countries.

Steve Englander, head of global G10 FX Research at Standard Chartered, noted the deal's significance as a potential template for other nations. With Trump's expectation of substantive negotiations between the U.S. and China in the coming days, market analysts remain watchful of upcoming developments. In the currency market, the dollar rose 0.98% against the yen and was up 0.48% versus the Swiss franc.

The Bank of England's decision to cut interest rates by a quarter point added to the financial movements, although not without some unexpected dissent among its members. The new U.S.-UK trade deal comes at a crucial time as the dollar index climbed 0.41% for its second consecutive gain, while cryptocurrencies like Bitcoin and Ethereum rallied strongly.

(With inputs from agencies.)