Dollar Dips Amid Trade Talk Turmoil

The U.S. dollar experienced its worst weekly drop in over a year as President Trump hinted at softened tariffs on China, leading to uncertainties in trade policies. The yen gained after the Bank of Japan hiked rates, while euro and sterling showed upward trends. Trump also pushed for Federal Reserve rate cuts.

The U.S. dollar took a nosedive on Friday, marking its largest weekly decline in over a year. The downturn followed President Donald Trump's suggestion of a more lenient stance on Chinese tariffs, further clouding the already uncertain U.S. trade policies.

Investors began to sell the dollar post-election as Trump's anticipated tariff impositions on China did not emerge as readily as expected. In a recent interview, Trump expressed a preference for negotiation over imposing tariffs to resolve trade tensions with China.

The yen initially surged following the Bank of Japan's rate hike, although gains leveled off. Trump's comments advocating for interest rate cuts by the Federal Reserve, prior to its policy meeting, also fueled currency market dynamics.

(With inputs from agencies.)