Dollar's Dynamic Dance: Steady Amid Global Uncertainties

The dollar steadied on Thursday after a sharp rally, following President Trump's softened stance on firing Federal Reserve Chair Jerome Powell and easing China tariffs. Various currencies, including the Australian and New Zealand dollars, also steadied. Meanwhile, bitcoin rose despite the dollar's rebound, buoyed by market dynamics.

The dollar found stability on Thursday after invigorating gains earlier this week, as U.S. President Donald Trump refrained from dismissing Federal Reserve Chair Jerome Powell and indicated a potential softening on China tariffs.

Following its dip beneath 140 yen on Tuesday, the dollar rebounded to 142.75 yen, assisted by U.S. Treasury Secretary Scott Bessent's comments on the lack of a specific currency target before discussions with Japan.

Across markets, the dollar's sensitivity to trade headlines was evident amid marginal recoveries in other major currencies, including bitcoin, which rose despite the dollar's rally.

(With inputs from agencies.)