The US dollar rose against a basket of currencies on Friday, driven by its safe-haven appeal amidst global uncertainties. The greenback benefited from concerns about worsening US-China relations, uncertainty surrounding the US presidential race, and speculation about the timing of potential Federal Reserve rate cuts.
Meanwhile, the British pound fell against the dollar following weaker than expected retail sales figures for June. The data suggests that British consumers are feeling the pressure of high interest rates, which could potentially hinder economic growth.
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The euro also weakened against the dollar after the European Central Bank kept interest rates steady, despite market expectations for a potential rate cut in September. The Japanese yen weakened against the dollar after inflation data came in softer than expected, raising questions about the Bank of Japan’s ability to further increase interest rates. The Chinese yuan weakened against the dollar, fueled by reports of potential stricter trade sanctions from the US on China’s technology sector.
Overall, the US dollar is benefiting from its safe-haven appeal amid global uncertainties, while the British pound is suffering from weak economic indicators and the prospect of lower interest rates.