Dollar Strengthens Amidst Major U.S. Trade Deal Hints

The U.S. dollar strengthened slightly following President Trump's announcement of a forthcoming 'major trade deal'. This boosted the dollar against major currencies, while the euro and sterling faced slight losses. Analysts maintain cautious optimism as markets anticipate further negotiations and economic developments.

The U.S. dollar saw a modest increase in value against a selection of major currencies on Thursday after President Donald Trump announced a forthcoming 'major trade deal'. The dollar rose by approximately 0.5% to 144.44 yen and 0.8275 Swiss francs, building on gains from the previous day.

The euro weakened, trading at $1.1291, following its biggest decline in two weeks. The U.S. dollar index inched up to 100.04, as Trump's announcement stirred cautious optimism among traders. While Trump did not disclose the country involved, reports suggest Britain could be a key player.

Sterling initially gained but then fell slightly in anticipation of the Bank of England's rate cut. Experts believe any breakthrough in trade talks could set a precedent, yet negotiations with China and the EU remain complex and speculative.

(With inputs from agencies.)