Dollar's Resurgence Amid Trade War Thaw

The U.S. dollar steadies despite weak data, driven by optimism over cooling trade tensions. President Trump's tariff policies influenced recent dollar movements. Currency strategists observe a de-escalation in trade conflicts. The Bank of Japan's meeting may influence further currency dynamics, amid Australia's inflation impact on their dollar.

The U.S. dollar stabilized on Thursday after initially wavering due to weak domestic data. Investor attention pivoted to positive signs in the ongoing trade war, which seems to be easing.

Despite its most significant monthly drop in over two years through April, the dollar climbed against the euro, yen, and pound, fueled by President Trump's temporary suspension of tariffs and his optimistic hints of agreements with countries like China, India, and Japan.

With Japan's central bank meeting on the horizon, stakeholders are keenly watching for policy hints that might affect the yen. Meanwhile, the Australian dollar shows resilience amid slightly hot inflation figures, providing a reprieve from dovish rate speculations.

(With inputs from agencies.)