The US dollar index edged up to 98.4 on Thursday, recovering slightly after a volatile previous session that ended lower amid renewed concerns over the Federal Reserve’s independence. Investors were rattled by reports suggesting that President Donald Trump might dismiss Fed Chair Jerome Powell, but the turmoil subsided after he denied this, saying it was “highly unlikely.” On the data front, US producer prices were unexpectedly unchanged in June, supporting the case for Federal Reserve rate cuts later this year. Investors are now awaiting retail sales data, due later today, for further insight. In trade developments, Trump said on Wednesday that the US will probably stick to 25% tariff on imports from Japan and hinted at a potential new trade deal with India, following his announcement of an agreement with Indonesia on Tuesday.