FX.co ★ Dollar Eases as Traders Digest Trade Signals

On Thursday, the dollar index declined to approximately 99.6, retreating after two consecutive sessions of gains. This shift comes as investors evaluated President Donald Trump’s evolving stance on Chinese tariffs. Reports suggest that the Trump administration might consider reducing tariffs on Chinese goods, contingent upon forthcoming discussions with Beijing. China, in turn, has indicated a willingness to engage in trade negotiations, provided that Washington abstains from issuing further threats. However, the optimism was moderated by remarks from US Treasury Secretary Scott Bessent, who emphasized that Trump has not proposed any unilateral tariff reductions and that formal negotiations have not yet commenced. Additionally, President Trump reassured earlier this week that he has no plans to dismiss Fed Chair Jerome Powell, alleviating concerns about political interference in US monetary policy. The dollar experienced widespread weakness, with significant declines against the euro, British pound, and Japanese yen.