The US Dollar Index slipped to 97.7 on Friday, pulling back from near one-month highs, after the US Supreme Court struck down President Donald Trump’s global tariff measures. The Court ruled that Trump had exceeded his authority under a federal emergency-powers statute by imposing broad “reciprocal” duties worldwide, delivering a major legal setback to the White House.
At the same time, investors assessed a new round of US economic data and its implications for Federal Reserve policy. US GDP expanded at an annualized 1.4% in Q4, undershooting the 3% consensus forecast and underscoring a loss of momentum amid tariff uncertainty and the government shutdown. December PCE figures showed both headline and core inflation rising faster than expected, while the S&P Global US Composite PMI pointed to the slowest pace of private‑sector growth in ten months.
Despite Friday’s pullback, the dollar remained on track for a 0.8% weekly gain, supported by FOMC minutes indicating that some policymakers are still open to additional rate hikes if inflation pressures prove persistent.
