The dollar index slipped to 100 on Friday but remained up 0.6% for the week, heading for a third weekly gain. Trump’s US-China and US-UK trade signals, along with the Fed’s steady rates and cautious tone, supported sentiment.

Gold hovered near $3,250 on Friday, heading for its steepest weekly loss in over two months as safe-haven demand faded with renewed U.S.-China trade talk hopes. Trump signaled potential deals with China, India, Japan, and South Korea. The U.S. economy unexpectedly contracted 0.3% in Q1.

The U.S. dollar rose above 99.5, supported by Trump’s softer tone on China trade talks and Fed Chair Powell. The euro closed at $1.1350, down from recent highs but up 5% this month. The ECB cut rates to 2.25% and dropped “restrictive” wording, signaling more cuts.

The US dollar index closed near a 3-year low, pressured by trade policy uncertainty, Trump’s Fed criticism, and easing inflation.

The dollar index fell to 99, a near three-year low, as China raised tariffs to 125% in response to the U.S.’s 145% hike, intensifying trade tensions.

The dollar index hovered just above 102, near a six-month low, as China’s 34% tariff on U.S. goods and strong U.S. jobs data raised recession fears and Fed rate cut bets.

The US dollar index is set to end the week higher as the Fed raised inflation forecasts, citing tariff risks.

The US dollar index rose toward 104, ending the week higher as the Fed held rates steady but reaffirmed plans for two cuts in 2024. Powell downplayed Trump’s tariffs, citing no urgency for more cuts. Trade tensions and economic uncertainty supported the dollar.