The U.S. dollar regained ground on Thursday, recouping losses from a turbulent Wednesday as global markets responded to speculation about the future of Federal Reserve Chair Jerome Powell. The greenback strengthened against all Group-of-10 currencies, resuming its upward trend for the month.
Asian stocks struggled for clear direction, mirroring the uncertainty seen in U.S. markets during the previous session. Traders reacted to mixed signals from Washington after President Donald Trump was rumored to be considering Powell’s removal — a move that briefly sent U.S. equities, Treasury yields, and the dollar lower.
However, Trump later downplayed the speculation, telling reporters he was “not planning on doing anything” regarding Powell’s position. This assurance helped stabilize markets, with S&P 500 futures dipping just 0.2% in Thursday’s early trade following gains in the previous session.
In currency markets, the yen weakened to 148.41 per dollar, with analysts warning it could break past the 150 mark. Meanwhile, the Australian dollar slipped, and government bonds declined as investors grew more confident that the Reserve Bank of Australia (RBA) may cut rates in August.
In Asia, Taiwan Semiconductor Manufacturing Co. (TSMC) shares dipped ahead of its earnings release later in the day, adding to the cautious market sentiment.
Meanwhile, Treasury yields edged higher, with the 10-year yield rising one basis point to 4.47%. Though Trump is pushing for lower interest rates, New York Fed President John Williams defended the current restrictive monetary policy, calling it “entirely appropriate” given the economic outlook.
