FX.co ★ Dollar Slips Amid Growing Economic Concerns

The dollar index experienced a decrease of approximately 0.4% on Friday, dropping below the 104 mark after hitting its highest levels in three weeks earlier. This decline comes amid growing concerns regarding the US economic outlook. The upcoming implementation of a reciprocal tariff, including a 25% duty on auto imports set for April 2nd, has heightened apprehensions about the economic repercussions of the Trump administration's trade strategies, especially as indicators of slowing growth continue to emerge. Meanwhile, February saw an uptick in core PCE inflation, surpassing projections, although personal spending did not meet expectations. Additionally, the Michigan consumer sentiment index was revised downward, the CB consumer confidence reached a four-year low, and an unexpected decline occurred in core durable goods orders. Over the course of the week, the dollar showed minimal changes but remains down approximately 3% for the month.