The U.S. dollar staged a rebound against its major peers on Wednesday on hopes of de-escalating trade tensions and as President Donald Trump backed away from threats to fire the head of the Federal Reserve,

A flight from U.S. financial assets prompted by President Trump’s trade war is subsiding as the White House appears increasingly keen to strike a new trade deal with top U.S. trading partner China. But the damage to the U.

The dollar tumbled on Monday to its lowest level in three years as investor confidence in the U.S. economy took another hit over President Donald Trump's attacks on the Federal Reserve chairman, potentially putting the central bank's independence under threat.

U.S. government bonds and the value of the U.S. dollar sinking is unusual because Treasurys and the dollar have historically strengthened during episodes of nervousness.

When politics interferes with the central bank’s ability to set monetary policy, inflation tends to be the result.