18.08.201719:24:00UTC+00Dollar Retreats on Uncertainty but Ends Week with Modest Increase

The dollar retreated against a basket of major currencies as the prevailing uncertainty regarding President Donald Trump's economic agenda prompted investors to lower their positions on the greenback.

The dollar slid almost 1 percent versus the yen, edging down to 108.58 yen, its lowest trading level since late April. The currency was last down 0.37 percent at 109.15 yen.

The U.S. currency declined to a four-month low versus the yen in early trading, but reversed some of the losses it incurred after talks regarding the impending dismissal of White House senior adviser Steve Bannon surfaced. The White House later confirmed Bannon's exit from the administration.

Bannon has been perceived by some market participants as an opposing force to the administration's chief economic adviser Gary Cohn and Treasury Secretary Steve Mnuchin.

Later in the day, the dollar managed to recover but failed to strengthen against the yen and the euro. It surrendered its gains later in the session to the British pound.

The dollar index advanced 0.35 percent this week. The euro slid 0.5 percent, its first weekly loss versus the greenback out of six. The dollar ended the week 0.1 percent up against the yen.