Dollar Strengthens as Bitcoin Reaches New Record High

The U.S. dollar gained against major currencies despite Trump’s tariff threats, except in Brazil where a 50% levy led to a decline in the real. Riskier assets rose as damaging tariff scenarios seemed less likely, boosting Nvidia’s valuation and Bitcoin’s peak above $113,000.

Benchmark 10-year U.S. Treasury yields rose slightly after jobless claims fell unexpectedly. The yield on 10-year notes increased to 4.352%. Federal Reserve minutes suggested potential interest rate cuts later this year, adding to investor optimism.

The dollar’s strength was attributed to the U.S. economy’s importance in global trade. Director of trading at Monex USA, Juan Perez, recommended holding onto the U.S. dollar amidst tariff volatility, noting its leverage in the global trading system.

President Lula da Silva of Brazil sought a diplomatic solution to Trump’s tariff threat but promised reciprocal action if necessary. Trump’s 50% tariff threat was in response to trade practices and the treatment of Brazil’s former president, Jair Bolsonaro.

Bolsonaro, on trial for allegedly plotting a coup, was once friendly with Trump. Brazil faced a 2.8% drop in the real, down to 5.5433 per dollar. Trump’s tariff threats remained consistent across countries, with Brazil initially facing a 10% levy.

Bitcoin hit a new all-time high due to institutional demand and Trump’s crypto-friendly policies. The cryptocurrency rose to $113,820.49, up 21% this year. The positive sentiment was driven by increased interest and demand from investors.

Read more at Yahoo Finance: Dollar rise against major currencies; bitcoin hits fresh record high