Finance & Stock Market
Dollar Strengthens on Hopes of Improved U.S.-EU Trade Ties
By Neelesh Pandey - 29 Jul 2025 01:21 PM
The U.S. dollar edged higher on Monday as markets reacted positively to a newly signed trade agreement between the United States and the European Union. The pact focuses on lowering tariffs and easing trade procedures, signaling a potential thaw in years of economic tension.
The greenback gained 0.4% against the euro and saw modest advances against other major currencies. Analysts say the agreement has boosted investor confidence, with expectations that improved trade flow could support U.S. economic growth.
Although it is still in the early stages, the deal focuses on industrial goods and seeks to simplify regulatory rules. Officials from both sides expressed optimism that the pact could pave the way for broader cooperation in the future.
Currency traders responded quickly, shifting toward the dollar in anticipation of a more stable trade environment. Attention now turns to upcoming U.S. economic data, which may offer further clues on the dollar’s direction.
