The U.S. dollar strengthened on Friday as escalating global trade tensions and economic slowdown fears weighed on markets. The euro slipped to $1.0847, retreating further from Tuesday’s five-month peak, as a trade dispute between the U.S. and EU intensified.
President Donald Trump threatened a 200% tariff on European alcohol imports, following the EU’s plans to impose levies on American whiskey in response to recent U.S. tariffs on steel and aluminum. The ongoing trade friction fueled uncertainty, pushing investors toward safe-haven assets like U.S. Treasuries, while the S&P 500 tumbled into correction territory.
The dollar index rose 0.1% to 103.95, extending its two-day gain, while the yen weakened to 148.32 per dollar. Japan’s wage negotiation results, expected later in the day, could influence the Bank of Japan’s interest rate stance, though policymakers are likely to remain cautious at next week’s meeting.
The pound hovered around $1.2945, awaiting UK GDP data, after retreating from Wednesday’s high of $1.2990. Meanwhile, the Australian dollar steadied at $0.6284, and the New Zealand dollar edged up 0.1% to $0.5702.
Bitcoin gained 1.32% to $81,410.36, continuing its recent uptrend amid broader market volatility.
Adding to economic concerns, a potential U.S. government shutdown looms. However, Senate Democrat Chuck Schumer signaled support for a Republican funding bill, easing some uncertainty.
As global markets navigate economic risks and policy shifts, investors remain cautious, awaiting key economic data and trade developments.


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