The dollar is strengthening again

The U.S. dollar index rose to around 98.7 on Thursday and closed lower after a volatile session the previous day, amid renewed concerns about the Federal Reserve's independence. Investors were shaken by reports that U.S. President Donald Trump might fire Fed Chair Jerome Powell, but the turmoil subsided after Trump dismissed the idea as "very unlikely." On the data front, producer inflation data came in lower than expected, bolstering the argument for a rate cut later in the year. Investors are now awaiting today's retail sales data for more information. In trade developments, Trump said on Wednesday that the U.S. would likely impose 25% tariffs on Japanese imports after announcing a deal with Indonesia on Tuesday, hinting at a potential new trade deal with India. The euro/dollar pair fell to 1.1582, trading down 0.50%.