Dollar Resurgence and Market Optimism Amid Tariff Turmoil

The U.S. dollar demonstrated resilience by rising against major currencies like the euro and Swiss franc on Thursday. Currency markets largely ignored President Donald Trump's recent tariff declarations, barring Brazil, where a potential 50% levy sent the real plummeting. Risk appetite among investors increased as severe tariff consequences seem unlikely.

Nvidia made history by becoming the first stock valued at $4 trillion, while bitcoin soared to a record over $113,000. Meanwhile, benchmark 10-year U.S. Treasury yields inched higher following unexpected declines in jobless claims last week. The yield on these Treasury notes rose slightly to 4.352%. Optimism was further fostered by Federal Reserve meeting minutes suggesting interest rate cuts could be on the horizon.

The dollar strengthened 0.37% against the Swiss franc, poised for a rise after two losing sessions. It remained stable against the Japanese yen. The euro dipped 0.23% and was heading for consecutive losses against the dollar. Despite Brazil's diplomatic approach to Trump's tariff ultimatum, the real suffered notable losses, dropping 2.8% and ending the session down 0.56% against the dollar.

(With inputs from agencies.)