Key Facts
The U.S. dollar rebounded on April 22 after a broad decline the previous day, driven by comments from U.S. Treasury Secretary Bessent, who expressed confidence that U.S.-China trade tensions would ease. Speaking at a private investor presentation hosted by JPMorgan, Bessent stated that neither the U.S. nor China considered the current situation sustainable, though he cautioned that negotiations with China could be a “long-term battle.”
By the end of trading, the dollar index, which measures the greenback against major currencies, rose 0.6% to 98.937, recovering from its lowest level since March 2022 recorded on April 21. The dollar also gained 1.17% against the Swiss franc, trading at 0.819 francs, and strengthened 0.42% against the Japanese yen, hovering near 141.47 yen after briefly dipping below the psychological threshold of 140 yen. However, the euro fell 0.73% against the dollar, trading at $1.1424.
Despite the dollar’s recovery, concerns lingered over the Federal Reserve’s independence following President Trump’s criticism of Fed Chair Jerome Powell. On April 21, Trump referred to Powell as “Mr. Too Slow” and warned that the U.S. economy could slow unless interest rates were immediately lowered. These remarks had previously pushed the dollar to a 10-year low against the Swiss franc and its weakest level against the euro since November 2021.
In the cryptocurrency market, Bitcoin surged 5.01% to $91,713.49, surpassing the $90,000 mark for the first time since March.
Meanwhile, U.S. Treasury yields declined as investors sought safe-haven assets amid ongoing market concerns. The 10-year Treasury yield fell by approximately 1.5 basis points to 4.39%, while the 30-year yield dropped by 3 basis points to 4.881%. In contrast, the 2-year yield rose to 3.809% from 3.752% the previous day, narrowing the yield gap between 2-year and 10-year bonds to 58 basis points.
In the stock market, major indices rebounded sharply, with the Dow Jones Industrial Average closing 1,016 points higher. The S&P 500 rose over 2.5%, though it remained 14% below its February 19 record close. Treasury Secretary Bessent’s remarks on easing trade tensions contributed to the rally, alongside strong corporate earnings reports.
The U.S. dollar rebounded on April 22, recovering from the previous day’s decline, following remarks by U.S. Treasury Secretary Bessent. Speaking at a private JPMorgan investor event, Bessent expressed confidence that U.S.-China trade tensions would ease, though he warned that negotiations could be a “long-term battle.” By the end of trading, the dollar index rose 0.6% to 98.937, recovering from its lowest level since March 2022. The dollar gained 1.17% against the Swiss franc, trading at 0.819 francs, and strengthened 0.42% against the Japanese yen, reaching 141.47 yen after briefly dipping below 140 yen. The euro fell 0.73% to $1.1424.
Bitcoin surged 5.01% to $91,713.49, surpassing $90,000 for the first time since March. Meanwhile, U.S. Treasury yields declined as investors sought safe-haven assets. The 10-year yield dropped 1.5 basis points to 4.39%, while the 30-year yield fell 3 basis points to 4.881%. In contrast, the 2-year yield rose to 3.809%, narrowing the yield gap with the 10-year bond to 58 basis points.
Stock markets rallied sharply, with the Dow Jones Industrial Average climbing 1,016 points and the S&P 500 rising over 2.5%, driven by Bessent’s comments and strong corporate earnings.
