Wells Fargo noted that the recent atypical selloff of the U.S. dollar is likely a temporary occurrence. Analysts believe that the current shift away from U.S. assets should only be transitory, as the shift is tactical rather than a fundamental reassessment.

The U.S. dollar index, which measures the greenback against six other major currencies, was up 0.6% at 98.937, after sinking as low as 97.923 in the previous session, a level not seen since March 2022. "There are signs that pressure is mounting on the White House to calm things down," said Adam Button, chief currency analyst at ForexLive.