The dollar index hovered near 98 on Friday after falling almost 1% in the previous session, with the decline largely driven by a sharp rise in the yen amid suspected intervention by Japanese authorities in the foreign exchange market. Reports indicated that US officials were notified in advance of the move, in line with the G7 practice that major currency interventions are typically communicated among member countries.
On the macroeconomic front, new data showed that the US economy grew at an annualized rate of 2% in the first quarter, recovering from a late‑2025 slowdown linked to a government shutdown. Consumer spending rose 1.6%, underpinned by resilient demand for services, while separate labor market figures showed jobless claims falling to multi-decade lows.
These releases came on the heels of the Federal Reserve’s recent decision to leave interest rates unchanged. However, policymakers acknowledged increasing internal disagreement as economic uncertainty persists, partly due to ongoing geopolitical tensions in the Middle East.
