US Dollar Slides Amid Tariff-Driven Inflation Concerns

The US dollar witnessed a decline against major currencies, such as the euro and yen, influenced by recent tariff-driven inflation data. This came after reaching a multi-week high. Investors are now eyeing the upcoming Producer Price Index (PPI) data, which could provide more insights into potential inflation trends.

Tariff-related goods inflation has increased, with prices of imported items soaring, leading to slightly reduced expectations of drastic Federal Reserve rate cuts. Despite this, the euro and sterling saw gains as they rebounded from earlier lows. There's speculation on how the Fed's cautious stance might evolve in the coming months.

Adding to the economic conversation, former President Trump's ongoing criticism of Fed Chair Jerome Powell is making waves. Trump's continuous calls for lower interest rates further add to the complexity, as trade agreements, such as Indonesia and a near-complete deal with Vietnam, are also in progress.

(With inputs from agencies.)