U.S. Dollar Rises Amid New Trade Tariff Turmoil

The U.S. dollar strengthened against key global currencies as President Trump announced new tariffs on Canada and other nations. While markets reacted calmly, uncertainty loomed over trade policies. Attractive labor data and upcoming crypto legislation also added to the dollar’s gains, despite earlier depreciation.

The U.S. dollar experienced a rally against major currencies, including the yen and euro, as President Donald Trump reignited trade tensions with a fresh round of tariffs on Canada. A 35% tariff on Canadian imports will take effect from August 1, leading to heightened market uncertainties.

Trump's aggressive tariff approach included a proposal for a 15% to 20% rate on other nations, escalating from the 10% baseline. Brazil, benefiting from a U.S. trade surplus, faced 50% duties, affecting copper and medicine sectors. These moves saw the dollar gain significantly, particularly against the yen.

Bolstering the dollar's strength were favorable labor market reports and Federal Reserve minutes, which dampened speculation of imminent interest rate cuts. Meanwhile, digital currencies surged, driven by investor optimism and U.S. legislative steer towards crypto initiatives.

(With inputs from agencies.)