Dollar Holds Steady Amid Trade War Tensions and Inflation Anticipation

The U.S. dollar maintained its stance on Friday, aligning for a slight weekly increase against major currencies as investors prepared for forthcoming inflation data. This data is anticipated to have little impact on the Federal Reserve's expected decision to reduce interest rates next week.

Investor sentiment was rattled by renewed trade tensions after U.S. President Donald Trump ended trade negotiations with Canada, citing alleged deceptive advertising involving former President Reagan. Focus is now on the upcoming dialogue between Trump and Chinese President Xi Jinping, which some believe might ease ongoing trade disputes.

Meanwhile, the imposition of new sanctions on Russian oil suppliers has influenced global oil prices and related currency rates. Japan's currency, the yen, faced depreciation amid speculations on its fiscal direction under Prime Minister Sanae Takaichi, with implications for Japan's monetary policies.