The U.S. dollar rose alongside Treasury yields on Wednesday, which in turn kept pressure on the yen after the latest U.S. inflation report showed signs that President Donald Trump's tariffs were beginning to feed into prices.

Something different just happened to the U.S. dollar, which recently completed its worst first half of any calendar year since at least the 1970s: The dollar strengthened this week, despite President Donald Trump’s ongoing tariff talk.

Europe’s economic optimism is facing a critical test as US President Donald Trump’s unexpected threat to impose a 30% blanket tariff on EU exports from 1 August reignites fears of a transatlantic trade war.