US dollar retreats from 2-year high as Trump touts ‘tremendous’ tariff power, but holds off on swift action.

The US dollar (DX=F, DX-Y.NYB) further retreated from near two-year highs on Friday, falling to a one-month low after President Trump said he would “rather not” impose tariffs on China.

“We have one very big power over China, and that’s tariffs, and they don’t want them,” Trump said in an interview with Fox News on Thursday. “And I’d rather not have to use it. But it’s a tremendous power over China.”

The US Dollar Index, which measures the dollar’s value relative to a basket of six foreign currencies — the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc — fell over 0.5% on Friday to cap off its worst week in over a year.

Still, the index has gained around 7% since its September lows and is up about 4% since Election Day.

Source: FINANCE.YAHOO