The dollar came under pressure again on Friday after mounting a rally on Thursday following comments from President Trump suggesting he would ultimately like a strong US currency.
Following Thursday's broad dollar rally, the currency gave way again on Friday, resuming its recent weaker trend, leaving the dollar index - a measure of the currency's value against a basket of its rivals - was testing its lowest levels in more than three years.
Weak dollar/strong dollar
The US currency has been highly volatile in the past couple of days. Comments from US Treasury Secretary Steven Mnuchin on Wednesday stating dollar weakness was good for the US economy and trade, sparked a bout of selling that lasted until Thursday afternoon.
At this point, speaking from Davos, Trump said: "The dollar is going to get stronger and stronger, and ultimately I want to see a strong dollar."
He added that Mnuchin's comments had been taken out of context, and that just because the Treasury chief had said a weak dollar was good for trade did not mean he supported a weak dollar.
No support from Fed
Dollar weakness has been a factor of the foreign exchange markets for the past year or so. Contrary to market norms, the greenback has not been supported by the Federal Reserve's monetary tightening policy after four rate hikes, mainly for structural and political reasons.
The president's haphazard first year in office has done little to encourage investment, and it has taken some time for Treasury yields to recover following years of ultra-loose monetary policy - particularly as inflation has remained stubbornly low.