The U.S. dollar found renewed strength on Thursday, climbing against major global currencies as markets awaited a key interest rate decision by the European Central Bank and reacted to the outcome of U.S.-Japan trade talks.
Against the yen, the dollar rose 0.56% to 142.61, rebounding from a seven-month low of 141.62 touched earlier in Asia. The recovery came after Japan’s Economy Minister Ryosei Akazawa confirmed that foreign exchange was not discussed during recent trade negotiations in Washington, easing fears of a policy move to strengthen the yen.
U.S. President Donald Trump said that there was “big progress” in ongoing tariff talks with Japan, a development that further supported the dollar. The greenback has faced pressure in recent weeks as Trump’s unpredictable trade policies have contributed to global economic uncertainty and shaken investor confidence.
Despite Thursday’s gains, the dollar remains on track for a fourth consecutive weekly loss. The dollar index, which measures the greenback against a basket of six major currencies, inched up to 99.56, reflecting cautious optimism ahead of the Easter holiday break.
The dollar advanced 0.49% to 0.8174 Swiss francs, maintaining its position near a decade-high resistance level. Since early April, the franc has posted nearly an 8% gain against the U.S. currency, the strongest among the G10 nations.
In other markets, the euro eased slightly ahead of the ECB’s rate decision, while the New Zealand and Australian dollars traded in narrow ranges. The kiwi hovered at $0.5936, above key technical levels, while the Aussie dipped 0.2% to $0.6358 despite solid jobs data.
Sterling held firm at $1.323, with softer inflation figures earlier in the week capping gains.
With the Easter holidays approaching, trading activity is expected to slow, but the dollar remains in focus as markets assess monetary policy outlooks and geopolitical developments.
