<\/p>\n\n\n\n
The U.S. dollar wobbled on Friday, on track for its fifth consecutive monthly decline as traders remained wary of escalating trade policy uncertainty and concerns over U.S. fiscal health. The greenback faced choppy trading this week, pressured by erratic developments in President Donald Trump\u2019s tariff agenda and ahead of key inflation data.<\/p>\n\n\n\n
The dollar index, which tracks the currency against a basket of six peers, edged 0.3% higher on Friday at 99.58 but is still poised for a 0.10% loss in May\u2014marking its longest streak of monthly declines since 2017.<\/p>\n\n\n\n
Markets remained jittery after a U.S. court on Thursday temporarily reinstated Trump\u2019s sweeping tariffs, reversing a prior ruling that had blocked them. Trump expressed hope that the Supreme Court would overturn the block, while administration officials floated using alternative presidential powers to enforce the duties.<\/p>\n\n\n\n
Investors are growing increasingly concerned that Trump\u2019s unpredictable trade policies could undermine U.S. market strength. \u201cThis will not stop money from flowing into U.S. markets, but investors will be looking for more attractive incentives, such as a slightly weaker dollar or high yields,\u201d said Kit Juckes, strategist at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale.<\/p>\n\n\n\n
The euro fell 0.4% to $1.1325 after mixed German state inflation data hinted at easing price pressures ahead of national figures. The greenback also edged up against the Japanese yen, which held at 143.93, although the yen is set for its first monthly loss against the dollar this year.<\/p>\n\n\n\n
Longer-term concerns about U.S. fiscal health were underscored by weak demand for newly issued, longer-dated Treasury securities, echoing similar issues in Japan.<\/p>\n\n\n\n
Emerging market currencies outperformed, with an index tracking them up 2% in May\u2014its strongest monthly gain since November 2023.<\/p>\n\n\n\n
Inflation in Focus<\/strong><\/p>\n\n\n\n Investors are now bracing for the release of the Federal Reserve\u2019s preferred inflation gauge, the personal consumption expenditure (PCE) report, due later Friday. Economists polled by Reuters expect the core PCE price index to rise 2.2% in April, slightly below March\u2019s 2.3% increase, with headline inflation set to show a similar trend.<\/p>\n\n\n\n The PCE reading could shape expectations for the Fed\u2019s rate path, especially as Trump\u2019s tariff threats loom over global trade. Economists warn that tariffs could drive inflation higher this year by raising import costs, complicating the Fed\u2019s task of balancing inflation control and economic growth.<\/p>\n\n\n\n Global Trade and Currency Watch<\/strong><\/p>\n\n\n\n Elsewhere, Scandinavian currencies weakened against the dollar, with the greenback up around 0.5% at 10.16 Norwegian crowns and 9.58 Swedish crowns. The Japanese yen was little changed after Tokyo\u2019s core inflation data hit a more than two-year high, reinforcing the prospect of further Bank of Japan rate hikes.<\/p>\n\n\n\n Markets are also closely watching for developments on potential U.S. trade deals as the July 9 deadline for Trump\u2019s tariffs approaches. Traders remain cautious amid growing uncertainty, which has become a defining feature of the global economic landscape this year.<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar wobbled on Friday, on track for its fifth consecutive monthly decline as traders remained wary of escalating trade policy uncertainty and concerns over U.S. fiscal health. The greenback faced choppy trading this week, pressured by erratic developments in President Donald Trump\u2019s tariff agenda and ahead of key inflation data. The dollar index, …<\/p>\n","protected":false},"author":9,"featured_media":112137,"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":[38,6827,49,37,36],"tags":[],"class_list":["post-114985","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","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\/114985","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=114985"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114985\/revisions"}],"predecessor-version":[{"id":114986,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114985\/revisions\/114986"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/112137"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=114985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=114985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=114985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}