Greenback Wobbles: Dollar Falters Amid Trade Uncertainties

The U.S. dollar weakened against major currencies as optimism from the U.S.-China trade ceasefire diminished. Safe-haven currencies like the Japanese yen strengthened, while concerns over trade policies continued. Investors awaited U.S. retail sales data to gauge consumer resilience amidst market turbulence and trade uncertainties.

The U.S. dollar weakened against major currencies on Thursday as anticipation for forthcoming retail sales data loomed. This data aims to shed light on consumer performance amid rising tariff concerns, while muted enthusiasm for a U.S.-China trade agreement set the backdrop for the currency's decline.

"Markets have exhausted the positivity from the U.S.-China trade talk," explained Benjamin Ford of Macro Hive. Safe-haven currencies, notably the Japanese yen and Swiss franc, experienced gains. Concurrently, the South Korean won surged amid discussions about its exchange rate against the dollar.

A Bloomberg report that the U.S. is not pursuing a weaker dollar as a negotiation point in tariff discussions helped steady market nerves. As a result, the dollar index dipped slightly, though it remains on track for a modest weekly gain, despite long-term challenges.

(With inputs from agencies.)