The U.S. dollar strengthened against major currencies after President Trump announced new tariffs on Canada and other trading partners. Tariff rates could increase to 15-20%, impacting Brazil and various sectors. Despite tariff jitters, market reactions have been relatively muted. The dollar index, down 10% this year, rose 0.28% to 97.85 this week. Labor market data and Fed meeting minutes also supported the dollar.

The Canadian dollar weakened against the U.S. dollar following the tariff announcement, while the Brazilian real also declined. Sterling fell to a two-week low due to Britain’s unexpected economic contraction. Cryptocurrencies surged due to institutional demand and favorable U.S. policies. Bitcoin hit a record high of $118,832, and ethereum rose to $2,987.15.

Investors remain cautious about the future of global trade and the impact of tariffs. Analysts predict a slow but steady depreciation of the U.S. dollar in the medium-term. Despite recent gains, uncertainty remains about the dollar’s future performance. Regional currencies and markets are closely monitoring the situation.

Read more at Yahoo Finance: Dollar strengthens against peers as Trump rekindles trade tensions; bitcoin hits record high