REUTERS, Tokyo

The US dollar stabilised on Thursday after retreating from a two-week high versus major peers, as markets took President Donald Trump’s latest tariff salvos in stride, except in Brazil where a threatened 50 percent levy sent the real sliding.

The dollar had been knocked back by a sharp decline in US Treasury yields as a 10-year note auction on Wednesday garnered strong demand, tempering worries about the “Sell America” narrative that had seen Treasuries, the dollar and Wall Street stocks sold off in tandem earlier this year.

Overall, investors were hungry for riskier assets with the most damaging tariff scenarios looking increasingly unlikely, helping Nvidia become the first stock ever with a $4 trillion valuation, and lifting cryptocurrency bitcoin to an all-time peak just shy of $112,000.

Sentiment also drew support from minutes of the Federal Reserve’s last meeting, with most policymakers of the opinion that interest rate cuts will be appropriate later this year.