Dollar Dips Amid Global Currency Shake-up: A Review

The U.S. dollar fell slightly against major currencies due to economic data releases and geopolitical concerns. President Trump's tariff threats caused market volatility, affecting currency strengths. Although the 'Sell America' strategy faded, the Australian dollar rose, boosted by positive employment data. Analysts await key U.S. inflation data for further insights.

On Thursday, the U.S. dollar experienced a slight dip against its major counterparts as financial markets anticipated key economic data. This movement coincided with the fading of the 'Sell America' trade following President Donald Trump's withdrawal of tariff threats and decision not to pursue Greenland by force.

The Australian dollar hit a 15-month high, attributed to unexpected favorable jobless figures, marking its strongest performance since October 2024. Conversely, Japan's yen remained under strain with developments such as a pending snap election prompting fiscal policy adjustments by Prime Minister Sanae Takaichi.

Market analysts noted that President Trump's tariffs initially caused concerns, leading to a U.S. asset selloff. However, experts like Bob Savage of BNY suggest these changes indicate risk management rather than a large-scale divestment from U.S. holdings. As attention turns back to central banks and interest rates, economists are closely monitoring upcoming PCE inflation data for signs of economic trends.