Dollar Falters Amid Fed Rate Cut Speculation and Global Geopolitical Talks

The dollar softened on Friday, concluding a week filled with significant data releases, and bolstering expectations for a Federal Reserve interest rate cut come September. Market participants turned their attention to the Alaska meeting between Donald Trump and Vladimir Putin, which focused on the Ukraine conflict.

During the week, the dollar spiked temporarily after U.S. producer prices exceeded estimates in July, only to taper off, finishing the week 0.5% down against other currencies. The potential September Fed rate cut, anticipated due to concerns over economic stability in the U.S., remained a primary focus.

Additional market movements were influenced by Japan's robust growth data that strengthened the yen and rising expectations for the Bank of England's hawkish rate cut bolstered sterling. Meanwhile, Bitcoin and ether recovered from Thursday's slump, buoyed by favorable regulatory frameworks and anticipated monetary policy easing.

(With inputs from agencies.)