<\/p>\n\n\n\n
The U.S. dollar extended losses on Friday, putting it on track for its worst weekly performance since early February, as concerns over Washington\u2019s mounting fiscal risks deepened following the House\u2019s approval of President Donald Trump\u2019s sweeping tax and spending bill.<\/p>\n\n\n\n
At 05:00 ET (09:00 GMT), the Dollar Index<\/strong> \u2014 which tracks the greenback against a basket of six major currencies \u2014 fell 0.6% to 99.295<\/strong>, on course for a 1.6% weekly decline<\/strong>, snapping a four-week winning streak.<\/p>\n\n\n\n Investors continued to react to Moody\u2019s recent downgrade<\/strong> of the U.S. sovereign rating, which cited the country\u2019s ballooning debt load and worsening fiscal trajectory. The concerns were magnified after the House of Representatives passed Trump\u2019s tax bill<\/strong> on Thursday by a razor-thin margin, sending it to the Senate where passage still appears likely.<\/p>\n\n\n\n The legislation, if signed into law, is projected by the Congressional Budget Office<\/strong> to add $3.8 trillion<\/strong> to the national debt over the next decade, further exacerbating investor fears about long-term fiscal sustainability.<\/p>\n\n\n\n Yields on long-term U.S. Treasuries surged<\/strong>, with the 30-year bond<\/strong> reaching 5.161%<\/strong>, its highest since October 2023, and the 10-year yield<\/strong> pushing above 4.6%<\/strong>, reflecting expectations of greater government borrowing and inflation pressure.<\/p>\n\n\n\n The euro advanced<\/strong> strongly on Friday, with EUR\/USD up 0.5% to 1.1338<\/strong>, after revised data showed Germany\u2019s economy grew 0.4%<\/strong> in the first quarter of 2025, double the earlier estimate.<\/p>\n\n\n\n The stronger-than-expected rebound in Europe\u2019s largest economy<\/strong> \u2014 driven by robust export and manufacturing activity \u2014 offered a much-needed boost to the euro amid lingering concerns about the broader eurozone’s economic outlook.<\/p>\n\n\n\n Analysts noted that the growth spurt may be short-lived due to the frontloading of trade activity ahead of U.S. tariffs, but the data nonetheless helped lift sentiment.<\/p>\n\n\n\n The British pound<\/strong> also posted gains, with GBP\/USD rising 0.5% to 1.3490<\/strong>, after U.K. retail sales jumped 1.2% in April<\/strong>, defying expectations and marking a fourth straight monthly increase \u2014 the longest such streak since the post-lockdown rebound in 2020.<\/p>\n\n\n\n The strength in consumer spending could pressure the Bank of England<\/strong> to take a more cautious approach to future rate cuts, especially as services inflation<\/strong> also remains elevated.<\/p>\n\n\n\n In Asia, the Japanese yen<\/strong> strengthened further, with USD\/JPY down 0.5% to 143.32<\/strong>, supported by accelerating inflation data<\/strong> and investor appetite for safe havens amid global fiscal volatility.<\/p>\n\n\n\n Japan\u2019s core CPI<\/strong> rose 3.5% year-on-year in April<\/strong>, above the consensus of 3.4% and marking the fastest increase in over two years. A more closely watched core-core measure (excluding food and energy) also ticked higher, reinforcing expectations that the Bank of Japan<\/strong> may adopt a less dovish tone going forward.<\/p>\n\n\n\n The Chinese yuan<\/strong> was little changed, with USD\/CNY edging 0.2% lower to 7.1887<\/strong>, in subdued trading as markets awaited further developments in U.S.-China trade dialogue<\/strong> and the potential economic impact of Trump\u2019s new tariffs.<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar extended losses on Friday, putting it on track for its worst weekly performance since early February, as concerns over Washington\u2019s mounting fiscal risks deepened following the House\u2019s approval of President Donald Trump\u2019s sweeping tax and spending bill. At 05:00 ET (09:00 GMT), the Dollar Index \u2014 which tracks the greenback against a …<\/p>\n","protected":false},"author":9,"featured_media":110847,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-114786","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=114786"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114786\/revisions"}],"predecessor-version":[{"id":114787,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114786\/revisions\/114787"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/110847"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=114786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=114786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=114786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Dollar Slumps on Debt Worries<\/h3>\n\n\n\n
Euro Jumps on German Growth Surprise<\/h3>\n\n\n\n
Sterling Rises as Retail Sales Surge<\/h3>\n\n\n\n
Yen Rallies Ahead of Japanese GDP Data<\/h3>\n\n\n\n
Yuan Steady, Market Awaits U.S.-China Updates<\/h3>\n\n\n\n