This week's events triggered sharp fluctuations of the dollar. On Monday, the US currency fell by 1% following Donald Trump's statements about a possible dismissal of Federal Reserve (Fed) Chair Jerome Powell due to their different views on monetary policy. A day later, the dollar rose about 1.5%, as the US President not only abandoned the idea of removing the central bank's head, but also signaled his willingness to reduce duties on Chinese goods. Finally, by Friday the US currency once again corrected amid the lack of progress in the negotiations between the United States and China, according to Reuters.
Despite high volatility, the dollar still managed to snap a four-week losing run and gained a total of 0.27% this week. Meanwhile, Trump's policies are raising concerns of investors, forced to face growing uncertainty, Reuters notes.
Besides China, the US is attempting to revise its trade relationships with South Korea and Japan. Officials from those countries participated in talks this week in pursuit of mutually beneficial conditions.