Dollar Heads for Biggest Weekly Drop in a Year as Geopolitical Jitters Rattle Markets
The U.S. dollar is on track for its steepest weekly decline in a year as investors reassess risk following President Donald Trump’s threats regarding Greenland and his subsequent surprise reversal, adding to broader geopolitical unease.
The greenback came under renewed pressure after U.S. assets sold off over the weekend, with rising geopolitical tensions weighing on investor confidence.
The euro settled at $1.1751, hovering near a three-week high touched earlier in the week, while the British pound climbed to $1.3496, close to a two-week high reached in the previous session.
Yen in focus ahead of BOJ decision
Attention on Friday is centered on the Bank of Japan’s monetary policy decision, with policymakers widely expected to keep interest rates unchanged after raising them to a 30-year high last month.
The yen has remained under pressure since Sanai Takaichi took office as prime minister in October, sliding more than 4% amid fiscal concerns and policy uncertainty. It traded around 158.50 per dollar during early Asian hours and is heading for a fourth consecutive weekly decline, the longest losing streak since September.
Traders are increasingly wary that a move above the 160 level could prompt Japanese authorities to step in, reviving fears of currency market intervention to support the yen.
Other currencies and crypto
The Australian dollar settled at $0.6841, while the New Zealand dollar slipped 0.25% to $0.5914.
Bitcoin edged up 0.37% to $89,518, recovering slightly from a one-week low earlier in the week but still reflecting cautious sentiment across risk assets.
