The U.S. dollar strengthened against several major currencies, especially the Japanese yen, as long-dated Japanese bond yields fell sharply following reports that Japan’s Ministry of Finance may reduce super-long bond issuance.
Meanwhile, investors were reassured by President Trump’s decision to delay higher tariffs on the European Union, which had initially boosted the euro.
Market attention remains on debates over Trump’s tax-cut bill, which could further increase U.S. debt and affect global confidence in U.S. assets.