Dollar Hits Year-to-Date Lows as Bulls Get Nervous; Yen Retreats from High
The yen retreated on Friday from a 2-1/2 month high hit after a jump in Japanese inflation, while the dollar was set for its third weekly drop in a row. Traders calculated the start of Donald Trump's second term has been mostly bluster on the tariff front, causing bulls to back off their long positions. The yen's retreat was likely more due to profit taking rather than a reassessment of rate-hike bets.
- This volatility reflects the ongoing uncertainty surrounding trade policy under Trump's administration and its impact on global markets.
- How will the impending shift in trade policies after Trump's second term affect the dollar's value relative to emerging market currencies?