US Dollar Steadies Amid Inflation Watch and Trade Talks

The U.S. dollar held firm on Friday, poised for a slight weekly gain against key currencies. Investors remain focused on upcoming U.S. inflation data, which is unlikely to deter the Federal Reserve's expected rate cut next week.

Analysts are also keenly eyeing a forthcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea, which has spurred hopes for a resolution to the ongoing trade conflict. "A trade truce is the best possible outcome, but expectations are modest," said Joseph Capurso from the Commonwealth Bank of Australia.

In other developments, new U.S. sanctions on Russian suppliers have driven oil prices higher, impacting currencies tied to oil imports. Japan's new Prime Minister Sanae Takaichi is set to introduce a significant economic stimulus, possibly delaying interest rate hikes by the Bank of Japan.