The US Dollar index recovered slightly around 99 after a sharp decline, influenced by shifting sentiments on US-China trade relations. The dollar showed mixed performance against other major currencies, gaining against the yen but losing ground against the euro, reflecting reassessments of political scenarios in Japan and France.
- The dollar index steadied around 99 after falling sharply in the previous session.
- President Trump walked back tariff threats on China, stating trade relations “will all be fine.”
- Vice President JD Vance indicated the US is open to negotiation with China.
- The dollar had fallen 0.5% Friday after Trump threatened 100% tariffs on Chinese goods.
- The dollar firmed against the yen as markets reassessed the chances of Sanae Takaichi becoming Japan’s next prime minister.
- The dollar held losses versus the euro after France unveiled a new cabinet line-up.
The performance of the US Dollar appears closely tied to geopolitical events and shifts in trade policy expectations. Reduced fears of escalating tariffs provide temporary support, while political developments in other countries influence its relative strength. Overall, external factors play a significant role in shaping the dollar’s movements.