The dollar advanced against its major peers after US President Donald Trump said he had no intention of firing Federal Reserve Chairman Jerome Powell.
The greenback climbed the most against the yen and Swiss franc as a rise in US stock futures damped demand for haven assets. The dollar climbed as much as 1% versus both currencies to around 143.00 yen and 82.69 centimes, respectively.
Some technical indicators and market positioning had suggested an overshooting of bearish dollar bets. The US currency fell to the lowest since December 2023 this week after Trump’s threat to fire Powell and the risk of a US recession fuelled a “sell America” trade.
“The dollar is rallying on Bessent’s China comments and news of Trump not looking to remove Powell — all great for risk sentiment on US assets,” said Billy Leung, investment strategist at Global X ETFs. “There were good bites…
