Dollar Surges Amid Easing U.S.-China Trade Tensions

The dollar gained strength against other major currencies on Monday, driven by a shift in tone from U.S. President Donald Trump regarding trade tensions with China. This change followed a period of market volatility triggered by Trump's earlier announcement of 100% tariffs on Chinese goods.

The dollar's recent performance contrasted with a widespread selloff in currencies and cryptocurrencies, spurred by fears of intensified trade friction during Trump's Liberation Day. Market participants expressed concerns after President Trump hinted at further trade barriers, which initially weakened the dollar.

Markets were calmed as Trump softened his stance, and U.S. Treasury Secretary Scott Bessent expressed optimism about de-escalating tensions. Despite political developments in France and Japan impacting the euro and yen, the dollar was buoyed by its status as a safe haven currency, with the index rising to 99.32.

(With inputs from agencies.)