Dollar struggles to recover from losses after Trump comments

THE dollar struggled to bounce back yesterday following another selloff fuelled by Donald Trump's suggestion he was happy with the currency’s recent decline, while tech firms helped most Asian equity markets extend their rally.

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A MAN walks past an electronic quotation board displaying the foreign exchange rate of Japanese yen against the US dollar, right, and the rate of 10-year government bonds along the sidewalk in downtown Tokyo yesterday.

(KAZUHIRO NOGI AFP)

Traders are also keeping an eye on the Federal Reserve's latest meeting, hoping for some guidance on its plans for interest rates amid uncertainty over the US president's policies following his latest tariff threats.

The greenback has retreated across the board this week following reports that the New York Fed had checked in with traders about the yen’s exchange rate, which fuelled talk that US and Japanese officials were prepared to stage a joint intervention.

That led to speculation the White House was prepared to let the dollar weaken, and Trump did little to dismiss that when asked on Tuesday if he was worried about the decline.