Dollar Surges in Response to U.S. Tariff Deadline

The dollar advanced against the euro, achieving its first weekly gain this month. Investors booked profits ahead of the U.S. tariff deadline. The euro softened despite Germany's fiscal reforms. The Federal Reserve remains cautious, leaving rates unchanged amid trade policy concerns. Bitcoin and other currencies showed minor declines.

The dollar climbed against the euro on Friday, marking its first weekly increase this month as investors cashed in on the euro's recent gains before the upcoming U.S. tariff deadline on April 2. The euro fell 0.3% to $1.08223, poised for a 0.6% weekly loss.

Despite earlier pressure over U.S. trade policies, the dollar gained this week partly due to the Federal Reserve's decision to hold interest rates steady. Additionally, Germany's legislative moves to bolster its economy did not prevent investors from taking profits in euros.

The Federal Reserve, the Bank of England, and the Bank of Japan all maintained their interest rates, awaiting clearer impacts from trade tariffs. Fed officials reiterated their cautious approach to further rate cuts, underscoring uncertainties in trade and their potential impact on inflation.

(With inputs from agencies.)