Dollar Dynamics: U.S. Dollar's Rise Amid Global Trade Concerns

The U.S. dollar rose against major currencies, including the Swiss franc and euro, following sales earlier in the week. President Trump's trade policies continue to stir uncertainty. The potential for higher tariffs and geopolitical tensions clouds the financial outlook, although some suggest potential recovery for the dollar.

The U.S. dollar gained strength against several major currencies, such as the Swiss franc and euro, as investors solidified their positions this Thursday. This comes after earlier selling, amid concerns about the economic impact of President Trump's trade policies.

President Trump threatened to impose a 200% tariff on European alcohol, marking another escalation in the global trade war. The announcement followed the EU's plan to counter-tariff $28 billion worth of U.S. imports next month. As U.S. producer prices remained unchanged in February, the possibility of further tariffs could impact future price levels.

UBS FX strategist Vassili Serebriakov noted a potential dollar rebound, despite ongoing tariff news and an approaching reciprocal tariff deadline. Meanwhile, the Japanese yen rose in anticipation of higher interest rates. The Canadian dollar dipped post-Canada's rate cut, showing broader market volatility driven by trade tensions.

(With inputs from agencies.)