WASHINGTON: The 90-day tariff reduction pact between the two economic giants triggered a global market surge, boosting risk sentiment and strengthening major currencies against the greenback.

Washington and Beijing’s announcement to ease their mutual tariff restrictions for 90 days ignited a global rally, lifting stock markets and affecting currency movements worldwide. The agreement marks a critical pause in the long-running trade tensions, offering hope to investors and fueling appetite for riskier assets.

The Chinese yuan responded by climbing to a six-month high, hitting 7.1855 against the dollar. Meanwhile, commodity-linked currencies like the Australian and New Zealand dollars also gained ground, with the Aussie rising 0.64% to $0.6412 and the Kiwi up 0.55% to $0.5889.

The Japanese yen rebounded 0.48% to 147.76 per dollar after a steep 2% drop in the previous session, while the euro recovered 0.25% to $1.1114 after a sharp 1.4% decline overnight. The British pound ticked up 0.16% to $1.3199, and the Swiss franc strengthened slightly, with the dollar slipping 0.25% to 0.8429 francs.

Despite the slight retreat, the dollar hovered near a one-month high against a basket of currencies, recently trading at 101.54, reflecting underlying strength amid the tariff truce.

In the cryptocurrency space, Bitcoin traded at $102,600, maintaining momentum after reaching its highest level since January 31 in the previous session. Ether dipped 1.1% to $2,458.36 but remained close to a two-month peak hit on Monday.