The U.S. dollar edged lower on Thursday, retreating from a two-week high against major currencies, as markets shrugged off President Donald Trump’s latest tariff threats. Risk sentiment held strong, with investors buoyed by optimism that the most severe trade tensions may be avoided.
The Brazilian real was an outlier, plunging as much as 2.8% overnight to 5.6047 per dollar after Trump proposed a 50% tariff on the country—citing both trade concerns and the treatment of former President Jair Bolsonaro, who is currently on trial for attempting to overturn Brazil’s 2022 election results.
Meanwhile, U.S. Treasury yields declined sharply after a robust 10-year note auction, adding pressure on the dollar and calming fears of a broad “Sell America” trend seen earlier in the year. The dollar index dipped 0.1% to 97.286, following a 0.2% drop on Wednesday.
Market enthusiasm extended to equities and crypto. Nvidia (NASDAQ: NVDA) became the first company to hit a $4 trillion valuation, and bitcoin surged to a record high of $111,988.90 before settling around $111,114. Analysts see potential gains toward $120,000 as investor risk appetite grows.
Federal Reserve minutes also bolstered sentiment, showing most policymakers anticipate rate cuts later this year.
In currency markets, the euro rose 0.2% to $1.1747, sterling climbed to $1.3612, the dollar fell 0.3% to 145.84 yen, and slipped 0.3% against the Swiss franc to 0.7922.
While Trump’s letters to trade partners reiterated earlier tariff proposals, countries like India, the EU, and Taiwan were notably absent, raising speculation about behind-the-scenes negotiations. A potential trade deal with India appears imminent, with the EU also nearing an agreement.


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