Dollar Surges Amid Sino-US Trade Truce

The U.S. dollar surged on Monday following a temporary tariff truce between the US and China, boosting investor confidence. The de-escalation in trade tensions resulted in the dollar's rise against safe-haven currencies. Financial markets are now anticipating fewer interest rate cuts by the Federal Reserve.

The U.S. dollar saw significant gains on Monday as the United States and China reached a temporary agreement to reduce reciprocal tariffs, easing trade tensions between the two major economies. The truce, reached over the weekend, surprised investors and sent waves through financial markets.

Market analysts noted a sharp rise in the dollar against safe-haven currencies, with notable gains against the yen and Swiss franc. Analysts such as Arne Petimezas of AFS Group highlighted the unexpected speed of U.S. tariff reductions.

Focus now shifts to upcoming U.S. economic data, which could influence future Federal Reserve policy decisions as the Sino-US trade agreement injects optimism into the global economic outlook.

(With inputs from agencies.)