Dollar Steady Near Six-Month Low
The dollar index pared early gains and traded flat around 102 on Friday, holding near a six-month low after a sharp 1.7% drop the previous day, as traders weighed escalating trade tensions. China’s finance minister announced a 34% tariff on all U.S. imports, matching the levies imposed by President Trump on Wednesday.
Growing concerns over the economic impact, including higher prices, slower growth and a potential recession, have fueled speculation of more aggressive Federal Reserve interest rate cuts. Traders now see a 50% chance of four 25bps cuts this year, up from the previous three in a week, with the first expected in June. For the week, the dollar is down about 1.9%.
Source: Trading Economics