The dollar index fell to 98.1 on Friday, approaching the lowest level in over three months as currency markets maintained their aversion to the greenback on unpredictable economic policy from the United States. President Trump initially threatened major European countries that opposed his plan to acquire Greenland with new tariffs while his administration struck a hawkish tone with Denmark and other NATO members, before reversing course and suspending tariffs while refraining from disclosing details on agreements. The dollar was also pressured by expectations that the Federal Reserve is due to cut rates more than other major central banks this week. Data from the Conference Board showed a decline in the US’s leading economic indicator, and the survey from UMich showed a downward revision in inflation expectations. Conversely, the BoJ delivered a hawkish hold while PMI aggregates in the Eurozone pointed to steady growth and a series of data from the UK backed hawks in the BoE’s MPC.
