Global Currencies Surge as Dollar Struggles Amid Trade Policy Uncertainty

The dollar faced pressures with other currencies like the franc, euro, and yen making gains. Trade deal prospects between the U.S. and Britain boost sterling. Speculations loom as Japan and the U.S. might agree on a stronger yen. Shaken market confidence continues amid fluctuating trade policies.

On Wednesday, the dollar faced challenges holding its ground as currencies such as the franc, euro, and yen advanced. Sterling reached a six-month high following potential trade agreements with the U.S. that exempted Britain from severe levies.

The euro bounced back from a recent dip and the Swiss franc gained strength since the U.S.'s tariff policy shifts, sending the dollar index below 100. The yen's increase fueled speculation about trade talks between Japan and the U.S.

Amid these dynamics, the Canadian dollar remained firm, highlighting investor uncertainty regarding U.S. policy. Market players are observing China's yuan and U.S. bond yields, with hopes that restored U.S. Treasury stability might signal a dollar rebound.

(With inputs from agencies.)