Dollar Tumbles as Supreme Court Blocks Tariffs
The dollar dropped after the U.S. Supreme Court blocked President Trump's tariffs, ending a four-day dollar gain streak. This decision, paired with economic data showing sluggish growth, lowered expectations for interest rate cuts. Rising tensions with Iran and eurozone data further influenced market movements.
The dollar slid on Friday, poised to end a four-day stretch of gains. This followed the U.S. Supreme Court's ruling against President Trump's tariffs under a national emergencies law, siding with a lower court in a decision that limited his authority.
The dollar's initial rise was buoyed by unexpected inflation data, though economic growth fell short of predictions, with GDP increasing by only 1.4% last quarter, according to the Commerce Department. The greenback's sudden decline highlighted the delicate balance of global economic forces and political maneuvers.
Market dynamics shifted further with eurozone manufacturing growth and ongoing geopolitical concerns, including U.S.-Iran tensions. Sterling gained strength, and expectations for Federal Reserve rate cuts dipped. As global markets react, the dollar's future trajectory remains uncertain amid these complex pressures.
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