FX.co ★ Dollar Rebounds Slightly on Trade Hopes

The dollar index rose slightly to 98.4 on Friday, after previously dipping to 98.03, marking its lowest point since October 6. This movement came as President Donald Trump indicated that the high tariffs on Chinese goods might not be permanent, hinting at a possible improvement in US-China trade relations just before his scheduled meeting with Chinese President Xi Jinping. The previous week, Trump had escalated tensions by threatening to introduce an additional 100% tariff on Chinese imports by November 1 if Beijing continued to restrict rare earth exports. Despite the increase on Friday, the dollar was still set to record a weekly decline of 0.5%, impacted by the ongoing US government shutdown, renewed concerns about regional banks, and rising expectations for Federal Reserve interest rate cuts. On Thursday, Fed Governor Christopher Waller expressed support for another rate reduction this month due to increasing risks in the labor market, while Fed Governor Stephen Miran recommended more substantial easing measures to sustain economic growth.