Dollar Dives as European Stocks Surge Amid Trump's Tariff Tango

The dollar declined, and European stocks rose, as news emerged that President-elect Trump would not immediately impose tariffs after his inauguration. European indices were up, while the dollar weakened, especially against major trading partners. Key currencies like the euro and yuan gained, and expectations grew regarding Trump's trade policies.

The dollar fell significantly on Monday, while European stocks saw a rally, following an announcement from the new U.S. administration. It was revealed that President-elect Donald Trump would not enforce tariffs during his inauguration, soothing market tensions.

The pan-European STOXX 600 rose by 0.3%, and all major indices showed gains around 0.5%. Meanwhile, the dollar dropped up to 1.3% against currencies like the Canadian dollar and euro. Trump's digital token soared before stabilizing at lower values as uncertainties lingered.

The market awaits further developments, with Eurozone bond yields steady and questions surrounding tariffs persisting. In the cryptocurrency space, Bitcoin reached a record high, while Trump's and Melania Trump's cryptocurrencies showed significant market activities. Commodities like gold and crude showed mixed moves amid geopolitical tensions.

(With inputs from agencies.)