U.S. Dollar Falls 0.1% Friday, Up 0.5% This Week as Rate Hike Bets Cool

On Friday (June 26), the U.S. dollar fell 0.1% after two consecutive days of declines, with the Dollar Index (DXY) closing at 101.32. Despite the daily pullback, the index posted a weekly gain of 0.5%.

Market focus shifted as May's core PCE inflation rose 3.4% year-over-year, marking the highest level since October 2023. However, analysts noted that with oil prices retreating to pre-conflict levels, traders have moderated expectations for further Fed rate hikes. The Federal Reserve remains focused on price stability under new Chair Kevin Warsh.