If the United States is to significantly reduce or, whisper it, eliminate its trade deficit, the dollar will probably have to weaken a lot. How much is unclear, though, as history shows large dollar declines are rare and have unpredictable consequences for trade.

The on-again, off-again threat of tariffs and unpredictable behavior is placing the greenback at its greatest risk since the eve of the Great Depression, Jon Talton writes.

The best week for the dollar in three months isn’t enough to reverse its broader declines as US trade and policy uncertainty weighs on sentiment.

The Indian rupee gained on Friday, as uncertainty around U.S. tariffs following a temporary reinstatement pulled the dollar index back below the 100-handle.

With the Trump administration increasingly focused on striking deals to help weaken the dollar, a team of analysts at Deutsche Bank crunched the numbers and determined just how much the greenback would need to weaken to eliminate the U.

If high tariffs and an appreciating yen mean the end of the carry trade, the greenback will be the canary in the coal mine for all US assets.