On Friday, the U.S. Dollar Index (DXY) settled at 100.424, down 0.212 or -0.21%.
Trade Optimism Underpins Dollar Strength
The dollar was poised for a weekly advance against major currencies including the Swiss franc, euro, and Japanese yen.
A recently announced U.S.-UK trade deal, which maintained a 10% base tariff on British goods while reducing levies on auto imports, lifted hopes of broader easing in global trade tensions.
Market participants viewed the agreement as a signal that the U.S. administration may be preparing to soften its stance on tariffs ahead of the U.S.-China trade meetings.
StoneX’s Matthew Weller noted a growing sense that “the worst of the trade wars and tariffs is behind us,” and this sentiment has been increasingly priced into markets.
The dollar’s strength against the Swiss franc—up for the fourth straight week—contrasted with Friday’s pullback of 0.35%, settling at 0.82865. Similar trends were observed versus the yen and euro, with weekly gains intact despite daily softness.
