The U.S. dollar maintained stability during Friday’s trading session but experienced its biggest weekly drop since last month because market participants focused on upcoming decisions from the Federal Reserve and Bank of Japan. The central banks will maintain their current interest rate policies while markets monitor their policy statements and political influences. President Trump demanded lower U.S. interest rates but later withdrew his threat to remove Fed Chair Jerome Powell from office which caused a temporary euro-dollar exchange rate increase. Still, political interference risks linger. The dollar index maintained a value of 97.45 throughout the week while experiencing a 0.75% decline. The euro demonstrated a 0.8% weekly increase because the ECB chose to keep interest rates steady while indicating no major policy changes. The euro reached its highest value against the pound since three months while sterling declined following weak UK retail statistics.
