Stronger US retail sales lifted sentiment but rising import prices renewed inflation worries. The dollar index slipped to 97.85, down 0.3% on the week. July retail sales came in stronger, but rising import prices raised inflation concerns.

The dollar index slipped to 98.2, set for a 0.8% weekly loss, as weak US data and fresh gold tariffs supported Fed rate cut bets to a 91% probability for September.

The BoJ kept its rate steady at 0.50% for a fourth consecutive meeting, with policymakers unanimous in their decision.

The US dollar index rose to nearly 99 this week, increasing by about 0.8% as strong economic data and waning Fed rate cut bets improved sentiment.

Gold held around $3,350, supported by demand as Trump announced a 35% tariff on Canadian imports and pushed for a 300 bps Fed rate cut, raising inflation fears.

The US dollar ended the week lower despite strong June jobs data, as trade tensions and fiscal concerns weighed.

The US dollar fell to 97.1, its lowest since Feb 2022, as Powell’s dovish stance and Trump’s rumored Fed pick raised concerns over central bank independence. Weak PCE data added pressure.

The US dollar index edged lower by week’s end but still posted gains, supported by safe-haven demand as Trump gave Iran a final warning on its nuclear program. The Fed held rates steady and signaled two cuts for 2025 but cautioned that tariffs could keep inflation high.