US Dollar Rises After US-China Tariff Truce

The US dollar has recently risen to near five-week highs against major currencies like the euro and pound following optimism from a US-China tariff truce, although it remains weaker against many emerging market currencies. The Trump administration is advocating for a weaker dollar to boost American exports, drawing comparisons to past interventions such as the Plaza Accord, but there is uncertainty about the emergence of a new global monetary agreement. Asian currencies, notably the South Korean won and Singapore dollar, have experienced sharp movements; the won stabilized after clarification that the US is not actively seeking dollar weakness, while the Singapore dollar's gains may fade with downgraded growth and inflation forecasts. Market expectations for US Federal Reserve interest rate cuts have shifted from several to possibly just one in 2025 due to strong US economic data and improved trade sentiment. Analysts warn the dollar could face pressure if global growth sentiment improves after rate expectations are fully repriced. The situation highlights ongoing volatility driven by trade talks, policy speculation, and regional economic trends.