The U.S. dollar slipped on Friday as traders exhibited caution about future interest rate decisions following the release of crucial import price data. While the yen outperformed both the euro and the pound, markets focused on potential implications from strong Japanese growth figures that defied new U.S. tariffs.
Attention is also on the high-stakes meeting in Alaska between President Donald Trump and Russia’s Vladimir Putin. The discussions, centered around Ukraine’s ceasefire, could affect currency valuations. Meanwhile, recent U.S. import price data has sparked concerns over inflation jumps, considering companies might pass tariff-induced costs to consumers.
Experts are closely watching next week’s Jackson Hole symposium for signs of shifts in Fed policy, amid concerns over labor market weaknesses and the inflationary impact of trade tariffs. As some analysts project, the ‘dollar risk premium’ might capsize, possibly weakening the currency due to increased hedging against exchange rate shifts.
(With inputs from agencies.)
