The US Dollar showed signs of recovery on Thursday morning, rising slightly from recent lows, but still remains near the bottom in 2025. This modest rebound came after President Donald Trump’s recent decision to halt his calls for Jerome Powell’s removal as Federal Reserve Chair and a shift in tone regarding the trade war with China. These developments briefly halted the Dollar’s decline, but no one expects it to suddenly regain its strength. 142.75 yen is currently the rebounding point, an area traders have closely watched throughout the month, after previously slipping below 140 yen earlier this week. 3-month technical support played a role in this short-term rally, but market experts remain skeptical. The US Treasury Secretary Scott Bessent asserted that there’s no specific exchange rate target for the dollar ahead of his upcoming meeting with Japanese counterparts. This statement, while seemingly vague, provided a brief boost to the Dollar. However, concerns about potential trade tensions between the US and China continue to linger. Despite this, the US administration has signaled its intention to end the current de facto embargo against Chinese exports, although it remains unclear whether they will be the first to lower tariffs. 2025’s currency markets remain volatile with the Dollar continuing its downward trend in Europe. A slight rally was observed from $1.1572 per euro, but this momentum stalled in Asia. Analysts at ING foresee continued bearish sentiment for the USD in the near term, as the EUR/USD pair continues to be heavily influenced by US Dollar fluctuations. This suggests that a further increase above $1.15 is still possible if concerns about the Federal Reserve’s independence resurfaced. Several other currencies are also struggling to find direction, including the Australian and New Zealand dollars. While the Australian dollar briefly broke above $0.64 this week before dropping back to $0.6355, it may encounter support around $0.6286, based on its 50-day moving average if global economic fears increase. Meanwhile, the Chinese Yuan weakened slightly to 7.2980 per dollar, indicating potential pressure from the overall Dollar movement. Crypto traders showed little interest in the US Dollar’s fluctuations, as Bitcoin surged past $92,732 during Asian trading hours, largely unaffected by market events and fueled by positive stock market trends. In a noteworthy development, Trump’s meme-coin, $TRUMP, experienced a significant surge overnight after a tweet announcing a gala dinner for the top 220 buyers of the coin.