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The dollar drifted higher on Friday, following small losses a day earlier, as traders grappled with the outlook for the U.S. economy following President Donald Trump’s erratic messaging on trade deals and Federal Reserve interference.

The U.S. currency has oscillated wildly this week, starting with a 1% tumble against major peers on Monday after Trump threatened to fire Fed Chair Jerome Powell for not cutting interest rates quickly enough, only to surge 1.5% a day later as Trump said he never had any intention of replacing Powell, and mooted a de-escalation in his trade war with China.

A lack of actual progress towards opening talks with Beijing, though, had the dollar drooping again later in the week. For the week overall, the dollar index – which measures the currency against six major peers – is on course for just a 0.27% rise, although that would still snap a four-week losing run.

Investors are particularly in the dark about where things currently stand with China. Beijing asserted on Thursday that it has not held trade talks with Washington, although Trump repeated later in the day that direct negotiations are underway.

Early on Friday, the dollar was up 0.3% at 143.08 yen, and 4% stronger at 0.8303 Swiss franc.

The euro slipped 0.3% to $1.1355. Sterling eased 0.2% to $1.3314.

Washington does appear to be making some progress in early trade talks with Asian allies South Korea and Japan.

Seoul’s delegation said on Thursday following the first round of negotiations that the two sides are aiming to craft a trade package before the pause on reciprocal tariffs is lifted in July.

Japanese Finance Minister said the same day after meeting U.S. Treasury Secretary Scott Bessent that there were no talks on currency targets. Trump had accused Tokyo earlier this month of weakening its currency to give its exporters an edge.

Japan’s chief negotiator, economy minister Ryosei Akazawa, will hold a second round of trade talks with Bessent next week.

”If the perception spreads that a reduction in tariffs is near, it could positively influence tariff negotiations with other countries, leading to a retreat from risk-off sentiment and a decrease in U.S. asset selling,” which could buoy the dollar back to 145 yen, Mizuho analysts wrote in a note.

”On the other hand, if negotiations look difficult even with Japan, a key ally, one can only imagine the situation with China.”

Bank of Japan Governor Kazuo Ueda on Thursday reiterated the central bank’s commitment to raising interest rates if underlying inflation evolves toward the 2% target as projected, but repeated that policymakers need to scrutinize the fallout from U.S. tariffs.

Core consumer prices in Japan’s capital rose 3.4% in April from a year earlier, data showed on Friday, accelerating for the second straight month.

The BOJ is widely expected to leave policy settings unchanged at its two-day meeting ending May 1.

Bitcoin rose slightly to trade at around $94,220, bringing it close to Wednesday’s high of $94,489.92, the strongest level since March 3.

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