The dollar showed a slight decrease on Friday, yet it remained poised for its most robust weekly performance in over a month. This comes amid expectations that the U.S. economy will continue to outpace its international peers in 2023, supported by a still strong labor market and persistently high inflation rates.
Upcoming policies from the Trump administration—such as business deregulation, tax cuts, and tariffs—are projected to bolster growth and add to inflationary pressures. Although the dollar index dipped by 0.28% to 108.91, it is still headed for a weekly gain of 0.85%, brushing against Thursday’s two-year high of 109.54.
Despite the dollar’s upward trend, uncertainties remain regarding the timing and impact of new U.S. government policies, which could hinder its rally in the short term. The euro and yen faced challenges, with political uncertainties in Europe and…
