US dollar strengthens following announcement of US-UK trade deal

The US dollar rose Thursday after President Donald Trump announced a trade deal with the UK.

Trump also signaled for a potential deal with China, which contributed to the rise.

Responding to a reporter's question about whether he would lower tariffs on China if trade talks this weekend went well, he said "well, it could be."

Noting that US Treasury Secretary Scott Bessent will meet with Chinese officials in Switzerland, Trump said this is very important.

The dollar rose against the euro by around 0.8%.

Gold was down 1.5% at $3,307.30 an ounce as of 2030GMT.

Trump has decided to remove the 25% tariff on UK steel and aluminum while also reducing the tariff on most car exports from 27.5% to 10%.

The new car tariff applies to the first 100,000 vehicles exported from the UK to the US annually, with 101,000 vehicles having been exported last year.

Trump also stressed Thursday that the US is very close to making more trade deals.

The US dollar also gained in value against the British pound by around 0.35% and around 1% against the Swiss franc.