The U.S. dollar was headed for a weekly decline against major currencies on Friday, as rising concerns over trade tensions and signs of risk in regional American banks pushed investors toward safe-haven currencies such as the Swiss franc and Japanese yen.

A partial U.S. government shutdown has also disrupted the release of key economic data, leaving investors with greater uncertainty about the state of the economy. While President Donald Trump stated that a proposed 100% tariff on Chinese goods would be unsustainable, he blamed Beijing for tightening control over rare earth exports. Trump also confirmed plans to meet Chinese President Xi Jinping in South Korea in two weeks to ease trade tensions.

“There’s a bit of safe-haven selling of the dollar,” said Steve Englander, Standard Chartered’s global head of G10 FX research. “The news on China, partly walked back, and concerns about regional banks and credit more broadly are hurting the dollar.”

The dollar fell 0.1% to 0.792 against the Swiss franc, marking its lowest level since mid-September and setting up its biggest weekly loss since June. Meanwhile, the yen erased earlier gains following comments from Bank of Japan Governor Kazuo Ueda about potential rate increases.

Investor caution is also affecting broader markets, with analysts noting a “debasement trade” as uncertainty over trade, Fed policy, and the U.S. shutdown encourages movement into gold, cryptocurrencies, and other risk-hedging assets. Fed Governor Christopher Waller indicated support for another interest rate cut later this month amid mixed job market data.

The euro was down 0.22% at $1.1661, though it is on track for its largest weekly gain against the dollar in nine weeks. The dollar index, tracking the U.S. currency against six counterparts, is heading for a 0.44% weekly decline, despite being largely flat on the day.

Political developments in Japan have also influenced currency movements. The lower house scheduling committee set a parliamentary vote for October 21 to select the next prime minister. The yen has weakened since fiscal dove Sanae Takaichi was elected head of Japan’s ruling Liberal Democratic Party, though a delay in her prime ministerial confirmation has added further uncertainty. Against the yen, the dollar remained flat at 150.44, but is still on track for a weekly loss.