Global Currencies: Turbulence Amid Political and Economic Pressures

The dollar index steadied but faced its biggest weekly decrease in a month on Friday amid the ongoing tariff negotiations and upcoming central bank meetings. Sterling also dipped following softer-than-expected British retail sales data.

Both the U.S. Federal Reserve and the Bank of Japan are anticipated to maintain steady interest rates next week, with market focus on subsequent comments for future rate movements. Political pressures also play a role, especially in the U.S. where President Trump reiterates his call for lower interest rates.

The yen softened due to disappointing Tokyo inflation data, while the euro edged down but was set for weekly gains, supported by the European Central Bank's steady policy decision and positive economic outlook.

(With inputs from agencies.)