Dollar hovers ahead of US inflation reading and tariff onslaught.

The dollar was headed for a steady week on Friday and a quarterly loss next week as concern about tariffs slowing U.S. growth has pushed down U.S. yields, stocks and the currency.

The euro, at just below $1.08, was headed for its largest quarterly rise in more than a year, gaining more than 4% since the start of 2025 on a combination of peace prospects in Ukraine, dollar weakness, and a leap in benchmark German yields.

The yen was marginally firmer and set for a quarterly gain just under 4%, at 151.19 per dollar – mostly unruffled by a sticky Tokyo CPI reading.

The best G10 performers have been the Scandinavians, which have posted year-to-date gains of near 11% for Sweden’s crown and almost 9% for Norway’s as central bankers seem in no rush to lower rates much further.

Sterling, at $1.2940, was steady in the Asia session for a gain of around 3.5% for the year so far.

Later on Friday, France and Spain publish preliminary inflation figures and the U.S. gets February figures for the Federal Reserve’s preferred core PCE inflation gauge.

Anything softer than the 0.3% month-on-month rise, which economists polled by Reuters expect, could keep downward pressure on the dollar and U.S. interest rates.

Source: Globalbankingandfinance