FX.co ★ Dollar Holds Firm as Trump Sets New Tariff Rates

On Friday, the US dollar index remained close to the 100 mark, maintaining its position at a two-month high following President Donald Trump's affirmation of a 10% baseline global tariff and the implementation of reciprocal duties of up to 41% on nations lacking trade agreements. Furthermore, Trump announced a 40% tariff on goods suspected of being transshipped to bypass current duties. This move intensified trade tensions and bolstered the US dollar's appeal as a safe haven asset. Investors approached with caution in anticipation of the July jobs report, which is expected to provide new insights into the labor market's strength and influence the Federal Reserve's upcoming policy decisions. On Thursday, data revealed that core PCE prices—the Federal Reserve's favored inflation indicator—rose by 0.3% in June and 2.8% from the previous year, complicating prospects for a potential interest rate cut in September. The dollar held steady against major currencies, reaching a four-month high against the yen.