Dollar Dips Amid Trump's Tariff Talks and Global Market Reactions

The U.S. dollar suffered its biggest weekly loss in over a year due to President Trump's comments suggesting a softer approach on China tariffs. This led to mixed reactions across global markets, with oil prices stabilizing and European stocks showing optimism.

The U.S. dollar experienced a significant drop on Friday, marking its largest weekly decline in over a year. This was triggered by President Donald Trump's remarks on a possible easing of tariff policies against China, which has introduced uncertainty in trade strategies and kept equity markets on edge.

In an interview with Fox News, Trump mentioned a friendly dialogue with Chinese President Xi Jinping, expressing hope for reaching a trade agreement. Trump's acknowledgment of tariffs as a formidable leverage over China, however, underscored ongoing trade tensions.

Subsequently, the dollar fell 0.8% against major currencies, recuperating slightly by the day's end. Analysts suggest that future U.S. tariff and interest rate decisions may alter the dollar's trajectory. The international market scene remains fluid as reactions vary to Trump's policy shifts.

(With inputs from agencies.)