The US dollar's performance remained bleak heading into the end of the week after the inauguration of Donald Trump as the 47th President of the United States (US) earlier this week.
The currency hovered at a 2-week low despite showing some improvement in the New York session yesterday.
Investors remained cautious awaiting clearer details about tariffs in the Trump administration's policy that will drive the financial market further.
Late last Tuesday, the Trump administration considered implementing a 10% tariff on Chinese imports starting February 1 after previously announcing a 25% tariff on Mexico and Canada.
Trump also threatened tariffs on goods from Europe, but has not commented further.
The dollar index (DXY) rose slightly after falling below the 108.00 point level. The 10-year US treasury yield also showed a recovery to 4.60% from its previous decline of around 4.53%.
In Europe, European Central Bank (ECB) policymakers signaled a further interest rate cut at next week's policy meeting.
Market expectations are at 90% for a 25 basis point hike by the ECB at its first meeting of 2025.
The first FOMC meeting next week will also be in the spotlight as the focus shifts away from sentiment following President Trump's inauguration this week.
