The US dollar index climbed toward 101 on Friday, poised for its third consecutive weekly gain as improving global trade sentiment and fading expectations of imminent rate cuts supported the greenback.
The rally was fueled in part by President Donald Trump's announcement of a preliminary trade deal with the UK, the first since the US imposed sweeping tariffs last month.
Trump also suggested that additional agreements could follow and hinted at a potential easing of tariffs on China, depending on the outcome of upcoming trade talks in Switzerland.
On the monetary policy front, Federal Reserve Chair Jerome Powell dismissed the idea of a preemptive rate cut in response to potential economic fallout from tariffs.
Powell also warned of elevated risks to both inflation and unemployment, signaling caution before adjusting policy further.
The US Dollar posted its strongest gains this week against the Euro, New Zealand Dollar, and Australian Dollar.
