Dollar Surge Amid Tariff Turmoil and AI Competition

The U.S. dollar rose against the yen following new tariff threats from President Trump, and as concerns over a Chinese AI model subsided. Tariff discussions and currency shifts highlighted geopolitical dynamics affecting global markets, while central banks prepared for pivotal interest rate decisions this week.

The U.S. dollar experienced a rise against the yen on Tuesday, prompted by fresh tariff threats from President Donald Trump, who aims to rejuvenate domestic production by imposing tariffs on imported goods such as computer chips, pharmaceuticals, and steel.

In a backdrop of fluctuating global market dynamics, Treasury Secretary Scott Bessent confirmed plans for progressive, universal tariffs, further impacting currency stability. Meanwhile, Chinese startup DeepSeek's open-source AI model briefly disrupted market perceptions of U.S. tech giants.

Amidst these developments, financial markets are now acutely focused on upcoming central bank meetings, with many anticipating interest rate decisions that could significantly influence economic strategies worldwide.

(With inputs from agencies.)