Currency Oscillations in Face of Trade Tensions

Global currencies stabilized after a volatile session driven by President Trump's tariff suspension on Canada and Mexico. Optimism persists over a potential U.S.-China deal, while concerns linger about potential trade wars. Trade uncertainties continue to influence market risk sentiment, affecting currency movements worldwide.

In a volatile week for global currencies, the Canadian dollar, Mexican peso, and euro steadied against the U.S. dollar, following President Donald Trump's tariff reprieve on Canada and Mexico.

Meanwhile, the Chinese yuan showed resilience amid hopes of averting a planned 10% tariff on Chinese goods. The Australian dollar, often considered a proxy for the yuan, reflected stability by rebounding from recent lows.

As political rhetoric intensified, global markets closely watched trade developments that could usher in broader economic impacts. Despite temporary reprieves, analysts remain cautious about future trade talks and their implications on market sentiment.

(With inputs from agencies.)