Dollar Steadies While Bitcoin Soars Amid Policy Uncertainty

The dollar nears its second weekly gain against major currencies backed by robust U.S. economic data, fostering belief in the Federal Reserve's current interest rate policy. Amid Japan's potential political shift affecting tariff discussions, Bitcoin reaches a peak with new stablecoin regulations.

The dollar is poised for a second consecutive weekly gain against major currencies, supported by solid U.S. economic data that implies the Federal Reserve may hold off on further interest rate cuts. Meanwhile, Japan braces for policy uncertainties as upper house elections loom, possibly affecting tariff negotiations with the U.S.

Bitcoin continues its bullish trend, hovering below $120,000 after pushing to an all-time high of $123,153.22. This price surge coincides with Congress's passage of a bill establishing a formal framework for dollar-pegged stablecoins. The dollar index remains steady, reflecting a 0.64% weekly advance.

Despite the dollar's recent gains, it remains 9.3% lower than at the start of the year due to earlier selloffs. Analysts suggest the U.S. currency is susceptible to further declines if U.S. policy uncertainties persist, especially with ongoing fiscal issues and criticisms of Federal Reserve Chair Jerome Powell by President Trump.

(With inputs from agencies.)