The dollar concluded the week with its largest weekly loss in months, primarily driven by anxieties surrounding U.S. trade strategies and remarks from Treasury Secretary Steven Mnuchin.

Mnuchin’s statement suggesting that a weaker dollar would be advantageous for U.S. trade triggered a wave of dollar selling. This sentiment, coupled with existing worries about potential protectionist measures, weighed heavily on the currency’s performance.

Analysts noted that the market interpreted Mnuchin’s comments as a departure from traditional U.S. policy of supporting a strong dollar. This perceived shift in stance added to the downward pressure on the currency.

Looking ahead, investors are keenly awaiting upcoming economic data releases, including GDP figures and inflation reports, to gauge the strength of the U.S. economy. Furthermore, any policy pronouncements from the Federal Reserve will be closely scrutinized for clues about the future path of interest rate hikes.

The dollar’s weakness has had a corresponding impact on other currencies, with the euro and the yen both strengthening against the greenback. Commodity prices, typically inversely correlated with the dollar, also saw an uptick.

The long-term implications of the dollar’s recent decline remain to be seen, but market participants are bracing for potential volatility as the U.S. government navigates its trade agenda and the Federal Reserve continues its monetary policy normalization.