That would mark the dollar's steepest weekly fall since before the USA presidential election in November and the sharpest yield drop since June past year. China still manipulates its currency, but it's now probably propping it up rather than holding it down.
The move lower for the dollar against the yuan was due to overall dollar weakness on the back of Trump's comments about possibly retaining Yellen and being opposed to the dollar's strength, said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in NY.
But Mr Trump told the newspaper Beijing has not been manipulating its currency for months - a point economists have been making for some time.
"China is a currency manipulator".
But now, Trump is saying something very different. "I blame our politicians for letting this take place". "And you know, it's very rare that he comes and stays with somebody and spends that much time", Trump said.
"President Xi wants to do the right thing", Trump said at a White House press conference Wednesday.
"I've made a lot of money with China", he said. "That's mass destruction. And he doesn't have the delivery systems yet, but he you know he will", he said. And I told them. "It's the single greatest tool they have - currency manipulat [ion] - and they're grand masters".
Five days later, on October 29 in Phoenix, Arizona, he added, "We'll have a great relationship with China. And we are going to stand up to China on its massive currency manipulation because they are beating our companies because of currency manipulation".
When asked whether he would nominate her for another term when her current tenure expires in 2018, Trump responded: "I like her, I respect her".
Trump administration appealing halt of revised Muslim ban
Court of Appeals in San Francisco, the same court that upheld the order stopping Trump's original travel order. His ruling came just hours before the federal government planned to start enforcing Trump's executive order.
In November 2015 he said, "The worst of China's sins is not its theft of intellectual property".
"It's hundreds of billions of dollars of year for many, many years". Trump has backed down on labeling China a foreign-exchange manipulator, and is leaning on Xi Jinping to put pressure on the North to back off on its nuclear weapons and missile development.
On the first page of Trump's 100-day action plan, the president pledged to direct Treasury Secretary Steve Mnuchin to label China a currency manipulator.
We'll await further developments on this front, but it certainly looks as though Trump got played on this issue ... "We're going to see about that".
The dollar fell broadly on Wednesday after U.S. President Donald Trump said the dollar was "getting too strong" and that he would prefer that the Federal Reserve keep interest rates low.
"It could also be taken as an implicit threat to other countries that if the dollar stays strong and if US bilateral trade imbalances with its major trading balances stay high or continue to expand, that he will take some sort of action", Prasad said.
Bonds also benefited from Trump's comments that he likes the Federal Reserve's low-interest-rate policy and is leaving open the possibility of renominating Chair Janet Yellen.
Oil traded flat on Thursday after weekly data indicated a continued rise in US production, while an International Energy Agency (IEA) report said the market was close to balance.
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