The dollar rebounded after President Trump denied reports of firing Federal Reserve Chair Jerome Powell. The dollar has rallied this month but remains down 9% year-to-date. Rising Treasury yields are supporting the rebound. U.S. retail sales rebounded more than expected in June, but the lack of near-term conviction led to the dollar falling back. Investors are weighing various factors like Trump’s tariff policies, fiscal outlook, and the Fed’s independence. Former Fed Governor Kevin Warsh suggested a new accord between the Treasury Department and the central bank. The dollar index rose 0.41% to 98.75, with the euro down to $1.1582.

Sterling weakened as British pay growth slowed and employee numbers dropped. The British pound was down 0.1% at $1.3405. Concerns rose over Japan’s election and a trade deal with the U.S. to avoid tariff increases. Polls showed Prime Minister Shigeru Ishiba’s coalition at risk of losing its majority. Japan’s trade negotiator met with the U.S. Commerce Secretary on tariffs. The yen weakened to 148.73 per dollar. The Australian dollar slid after poor jobs data, with unemployment at highs not seen since 2021. The Aussie was down 0.64% at $0.6484. Bitcoin fell 0.22% to $119,676.

Read more at Yahoo Finance: Dollar gains broadly; yen dips before election Japan election