Dollar falls as U.S.-China trade uncertainty resurfaces

when President Donald Trump stepped back from threats to remove the Federal Reserve chair and appeared to take a more conciliatory approach toward China.

However, the lack of follow-up from Beijing weighed on sentiment by the next day.

The dollar dropped 0.75% against the yen, settling at 142.39, though it remained above the 140-mark it breached the previous week. The Swiss franc also gained, pushing the dollar down 0.6% to 0.8251 francs, its lowest level in over a decade.

The British pound rose 0.5% to $1.332 after a statement from the UK finance minister expressing confidence in a U.S.-UK trade agreement.

Meanwhile, the dollar’s overall performance in April showed a decline of 4.8%, its worst monthly drop since November 2022. It is currently on track for its weakest start to the year against a basket of currencies since the 1970s.

In cryptocurrency markets, bitcoin followed the dollar lower, slipping 1.2% to $92,476. In contrast, a digital token associated with President Trump surged 33% overnight after the announcement of a gala dinner for top holders of the coin, though it remains far below its January launch value.