The US dollar dropped on Friday, as markets are all set for a speech by Federal Reserve chair Jerome Powell. Powell had earlier hinted on the direction of monetary policy triggering what could be the biggest weekly decline of dollar since March.
Dollar stood at 95.516, down 0.2 per cent on Friday. The US currency took a hit this week after US President Donald Trump said he was "not thrilled" with the Fed under Chairman Jerome Powell for raising interest rates. Interestingly, Powell was appointed by the US President himself.
In addition to Powell's comments, the changing political climate of US, thanks to the criminal convictions of Trump's two former advisers this
week, has also put the dollar under pressure.
"In the current state of the US political system, that is dominated by doubts in the system of checks and balances, remnants of US dollar negativity remain," said Commerzbank analyst Ulrich Leuchtmann to Reuters.
Powell is due to give a speech later in the day at the Jackson Hole, Wyoming, conference of central bankers.
Bankers are keen on Powell's speech as dollar repercussions might impact currencies across the globe.