Dollar Surges After Court Blocks Trump's Tariffs

A U.S. court has blocked President Trump's Liberation Day import tariffs, causing the U.S. dollar to rally. The court ruled that Congress holds the authority over commerce, overriding the president's emergency powers. The move boosted markets, as the dollar gained against major currencies.

The U.S. dollar experienced a significant surge on Thursday after a court ruling blocked President Donald Trump's Liberation Day import tariffs. The currency witnessed a sharp increase against the euro, yen, and Swiss franc.

The Manhattan-based Court of International Trade declared that the U.S. Constitution grants Congress exclusive authority in regulating commerce with other nations, thus overriding the president's emergency powers meant to protect the U.S. economy. In response, the Trump administration filed an appeal.

The court ruling initiated a risk-on rally across global markets, pushing Wall Street futures upward while the dollar index rose, indicating renewed investor confidence. Despite Trump's tariffs initially undermining faith in U.S. assets, the court's intervention provided a potential reprieve for global trade dynamics.

(With inputs from agencies.)