Trade Tensions Keep Dollar Dazed as Uncertainty Looms Large

The dollar struggled to regain its footing amid ongoing uncertainty in the U.S.-China trade war. Despite some signs of easing, conflicting signals and a lack of concrete progress kept investors wary. The currency saw minor gains against the yen and Swiss franc, while broader market sentiment remained cautious.


Devdiscourse News Desk | Updated: 29-04-2025 11:18 IST | Created: 29-04-2025 11:18 IST
Trade Tensions Keep Dollar Dazed as Uncertainty Looms Large
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The dollar barely recovered from its steep decline on Tuesday, as investors remained uncertain about the de-escalation of the Sino-U.S. trade war. Treasury Secretary Scott Bessent suggested that it was China's responsibility to initiate negotiations, further muddying the waters over trade talks between the world's two largest economies.

Despite U.S. President Donald Trump's claims of progress, Beijing has denied these reports. The confusion led to more dollar sell-offs, plummeting its value against the yen and Swiss franc. The U.S. currency managed to eke out slight gains against the Swiss franc and yen, as trading thinned due to a holiday in Japan.

Market sentiment was mildly buoyed by Trump's administration's plans to mitigate the impact of automotive tariffs. However, experts remain doubtful about a near-term trade deal, with the U.S. tariff strategy viewed as chaotic. Investors are increasingly seeking European alternatives, with the euro posting significant gains.

(With inputs from agencies.)

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