Global Markets Rebound Amid Dollar Stabilization and Cryptocurrency Surge

The U.S. dollar stabilized after a recent dip, influenced by President Trump's trade tariffs, particularly affecting Brazil. Markets appeared calm, with investors favoring riskier assets. Federal Reserve minutes suggested interest cuts might occur later this year. Bitcoin reached new highs, hinting at potentially further gains.

The U.S. dollar found stability on Thursday following a retreat from a recent two-week high against major global currencies. This comes as market players largely shrugged off President Donald Trump's latest tariff actions, except in Brazil, where a threatened 50% levy sent the real tumbling.

Investor appetite for riskier assets increased, as damaging tariff scenarios appeared less likely, enabling companies like Nvidia to reach unprecedented valuations and pushing bitcoin to almost $112,000, an all-time peak. The Federal Reserve's meeting minutes also buoyed sentiment, with most officials supporting interest rate cuts later this year.

Despite a 0.2% drop on Wednesday, the dollar index, measuring it against six major currencies, remained relatively unchanged at 97.404. President Trump's tariffs mirrored his initial 'Liberation Day' proposals, except for Brazil, where political complexities added to market moves. The Brazilian real fell notably due to increased tariff threats linked to political issues under former president Jair Bolsonaro.

(With inputs from agencies.)