The U.S. dollar regained strength on Thursday, surpassing its recent lows, amid President Trump’s ambiguous tariff threats targeting Europe, Canada, and Mexico. This mixed messaging injected uncertainty into the markets, causing traders to adopt a cautious approach amidst fluctuating currency values.
Market observers noted that Trump’s unpredictable trade maneuvers haven’t translated into immediate market upheavals. Meanwhile, concerns over U.S. economic growth increased as recent indicators pointed to declining business activity and consumer confidence. These worries were reflected in the falling U.S. Treasury yields.
Analysts suggest that while current economic data maintains a positive trajectory, the U.S. Federal Reserve is poised to cut interest rates twice this year, anticipating easing in 2025. With key figures such as GDP pending release, the global currency landscape continues to navigate through these economic uncertainties.
(With inputs from agencies.)
