ChainCatcher reported that the U.S. dollar is heading for its biggest weekly drop in three months, and silver investors are beginning to question the so-called "Trump deal" that has pushed the dollar stronger since the U.S. election. The U.S. dollar index DXY fell nearly 0.2% in Asian trading on Friday, widening its weekly decline to 1.1%.
The dollar weakened against all other G10 currencies this week, with the biggest fall against the yen. "The market is still trying to find the direction of the dollar," said Mingze Wu, a foreign exchange trader at StoneX Financial in Singapore. "We expect the dollar to fluctuate sideways before Trump is sworn in in January next year, and the direction of the dollar will be clearer once Trump announces his policies."
Trump’s social media posts began to roil financial markets, with concerns growing that his policies could ultimately hurt the world’s largest economy, stalling the dollar’s eight-week rally.A Citigroup index tracking currency funds’ dollar positions climbed this week to its highest level since August 2023, suggesting long positions may be overextended.
