Dollar Dips Amid Fed Rate Cut Speculation and Geopolitical Talks

The dollar took a hit by the week's end, trading lower on Friday as anticipation grows for a potential Federal Reserve interest rate cut in September. Despite Thursday's rise fueled by unexpectedly strong U.S. producer prices, the dollar was still projected to close the week down 0.4% against major currencies.

Market experts remain firm on their predictions for a rate cut, with the prospect of a Trump-Putin meeting in Alaska adding geopolitical weight to the currency's performance. Most economists think the health of the U.S. economy warrants a rate cut, exacerbated by pressure from ongoing tariffs.

Additionally, the market's focus is tuned to next week's Jackson Hole symposium for signals on the Federal Reserve's direction. Indicators of a softening labor market, paired with potential inflation from tariffs, create a complex decision matrix for the Fed. This volatile situation keeps investors closely monitoring any developments, particularly those across the geopolitical stage.

(With inputs from agencies.)