FX168 Financial News Agency (Asia-Pacific) reported that Bloomberg in the usa stated on Friday (November 29) that due to investors beginning to reconsider the so-called 'Trump trade' that has pushed the dollar up since the usa elections, the dollar is heading towards its largest weekly drop in three months.

(Screenshot Source: Bloomberg)

The Bloomberg usd index dropped 0.2% on Friday, and the decline for the week has widened to 1.1%.

This week, the usd fell against all other mmf in the G10 with the exception of one, with the largest decline against the yen.

Bloomberg pointed out that the rise in the usd has stalled due to the tariff threats from the elected president of the usa, Donald Trump, disrupting financial markets, and Scott Bessent being nominated as the next Treasury Secretary lowering us treasury yields.

The usd also retreated after the usd long position index climbed to its highest level in over a year, indicating that a correction may have been due for some time.

(Screenshot Source: Bloomberg)

Ray Attrill, the forex strategy director at national australia bank limited sponsored adr, believes that the decline of the usd is related to the drop in us treasury yields from the mid-month high of 4.50%, which is also the reason for the significant drop in usd/jpy.

Attrill stated that there is a view before the thanksgiving holiday that investors outside the usa may be selling usd, as they seek to rebalance their portfolios after the rebound in the usa stock market this month.

Since trump announced the nomination of key square group's head besant as treasury secretary a week ago, us treasury yields have been declining. The market believes that besant is eager to control government spending.

The bloomberg usd index has still risen by more than 5% this year, having risen for eight consecutive weeks before peaking last Friday.

Mingze Wu from stonex financial in Singapore stated: "The market is still trying to find the trend of the usd. We expect the usd to experience sideways fluctuations before trump's inauguration in January next year."Forex tradingThe market is still trying to find the trend of the usd.

Mingze Wu added that once Trump announces his policy, the direction of the usd will become clearer.