The U.S. dollar slid on Friday and was set for its worst week in over a year after President Donald Trump suggested a softer stance on tariffs against China, adding to uncertainty around the trade policy that kept equity markets on edge.

The Fed is expected to keep interest rates on hold but the larger story unfolding will be how the central bank confronts early moves by Trump.

The Bloomberg Dollar Spot Index has seen a significant decrease of 1.7% since the close of last week, marking its worst performance in a week for the past 18 months. The last time such a steep drop was observed was in July 2023,

Gold futures gained for the fourth consecutive week, as a weaker dollar and uncertainty surrounding President Trump's tariff plans have driven the metal's appeal as a safe-haven asset. Trump told Fox News in an interview that he would "rather not have to use" tariffs against China,