The dollar index remained above 97.7 on Friday and was largely unchanged for the week, supported by stronger-than-expected inflation that reinforced expectations the Federal Reserve will hold interest rates steady. January’s PPI rose 0.5% month-on-month, up from 0.4% in December and exceeding forecasts of 0.3%, signaling persistent price pressures. Jobless claims data showed both initial and continuing claims below expectations, pointing to a stable US labor market and solid worker retention. Money markets are projecting at least two rate cuts this year, with the first one fully priced in July. Investors also watched potential US tariff increases from 10% to 15% for some countries and ongoing US-Iran nuclear talks set to continue next week. The dollar is on track to finish the month 0.9% higher, ending a three-month losing streak.
