Dollar Steadies as Trump Eases NATO Tariff Threats

The U.S. dollar remained firm after President Trump withdrew threats of imposing tariffs on European NATO countries regarding Greenland. Consequently, the Swiss franc and gold declined, while the Australian dollar rose on improved risk sentiment and decreased unemployment rates. Meanwhile, the yen stayed pressured near record lows.

On Thursday, the U.S. dollar held steady after President Donald Trump retracted his tariff threats aimed at several European NATO nations over issues related to Greenland. This decision led to a decline in the Swiss franc and gold prices while boosting the Australian dollar to a 15-month high due to improved risk sentiment and a surprise drop in unemployment.

The yen continued to feel the pressure, staying near record lows against the euro. Japanese Prime Minister's recent call for a snap election and his promises of looser fiscal policy have influenced this situation, with the Bank of Japan expected to maintain its current policy during their ongoing meeting.

The dollar was unchanged against the euro, holding at $1.1685, and remained stable against the Swiss franc. The markets had been rattled by Trump's earlier threats over Greenland, which he later softened by declaring he wouldn't use military action, calming investor nerves.

(With inputs from agencies.)