TOKYO: The U.S. dollar rose on Friday, trimming its weekly losses, after President Donald Trump said he would soon announce his nominee to lead the Federal Reserve and as optimism grew that Washington would avoid a government shutdown.
Read More: Dollar weakens amid ‘sell America’ trade, Yen slumps too
Trump said he planned to name his choice to replace Federal Reserve Chair Jerome Powell on Friday, following reports that former Fed Governor Kevin Warsh had visited the White House. Two sources familiar with the matter said Warsh met Trump on Thursday and left a favourable impression as the president vets candidates ahead of Powell’s term ending in May.
DOLLARS AND DECISIONS: President Trump says he has chosen his next Federal Reserve chair, a pivotal pick as the cost-of-living squeeze tightens for Americans.
“I know who I am going to pick.” pic.twitter.com/FXVkUDiYaz
— Fox News (@FoxNews) December 2, 2025
The dollar recovered some ground after sliding earlier in the week amid heightened geopolitical tensions involving Cuba, Iran, Venezuela, Greenland and Europe, which had shaken investor confidence in U.S. assets.
“The appointment of Warsh, if confirmed, would likely be seen as someone able to remain independent rather than subservient to Trump’s wishes,” said Khoon Goh, head of Asia research at ANZ in Singapore. He added that some of the dollar’s rebound reflected position-trimming ahead of the weekend.
The dollar index, which measures the greenback against a basket of major currencies, rose 0.4% to 96.60, narrowing its weekly decline to about 0.9%. The dollar strengthened 0.7% against the Swiss franc to 0.7699. The euro fell 0.4% to $1.1916, while the yen weakened 0.42% to 153.77 per dollar. Sterling slipped 0.32% to $1.3759.
On the policy front, the White House said Trump signed an executive order imposing tariffs on countries supplying oil to Cuba. Reports that the administration is considering military action against Iran had earlier boosted oil prices and pressured the dollar.
Support for the greenback also came after Trump endorsed a bipartisan spending deal aimed at averting a government shutdown. The dollar had earlier hit a four-year low before recovering slightly following comments from Treasury Secretary Scott Bessent reaffirming a strong-dollar policy.
Read More: Oil jumps on Trump’s Iran threat
Meanwhile, Japanese data showed inflation in Tokyo slowed but remained in line with the central bank’s target, helping keep the yen within a narrow range.