By WSJ Staff

The dollar is on track for its worst week in seven months, following a tumultuous few days for U.S.-European relations.

-- The WSJ Dollar Index, which tracks the greenback against a basket of currencies, is down around 0.8% this week so far.

-- That puts the gauge on pace for its biggest drop since the week ending June 27, a previous episode of market-stirring heightened geopolitical tension.

-- The ICE U.S. Dollar Index is down around 1% this week, also on track for its biggest weekly drop since the summer.

The dollar inched lower on Friday, despite President Trump backing off earlier in the week from tariff threats against European nations.

The "sheer unpredictability" of his actions may be weighing on the currency, says Jane Foley, Rabobank's head of foreign-exchange strategy.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

January 23, 2026 11:10 ET (16:10 GMT)

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