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Dollar Rises After Tariff Threats
The US dollar rose during trading on Thursday, July 10, as markets digested the latest developments in US President Donald Trump's tariffs
with the exception of Brazil, where the US president's threat of 50% tariffs caused the Brazilian real to fall.
This follows a decline in the dollar on Wednesday as US Treasury yields fell sharply after a 10-year bond auction saw strong demand, allaying concerns about a simultaneous sell-off of bonds, the dollar, and stocks, similar to what happened earlier this year.
The dollar index, which measures the US currency against a basket of currencies, rose 0.52% to 97.887 during trading on Thursday, after falling 0.2% on Wednesday, the same day it rose to its highest level since June 25 at 97.837 before later declining.
The euro fell 0.47% during Thursday's trading to $1.167, and the British pound fell 0.4% to $1.354.
Against the Japanese yen, the US dollar rose 0.3% to 146.735 yen, while it rose 0.54% against the French franc to 0.798 francs.
Digesting Tariff Surprises
Francesco Bisol, a currency expert at ING Bank, commented on the markets, saying that markets are still digesting the recent surprises regarding the developments in the tariffs, but there is difficulty in predicting the US president's next move.
However, Bisol added: "I think the general consensus remains that he will not impose new tariffs on China and that he will be able to agree on some kind of deal with the European Union."
