The dollar index (DXY00) on Friday fell by -0.41%, undercut by Friday's weaker-than-expected US consumer sentiment report. The dollar also suffered from underlying foreign investor concern about the possibility of a politically-driven US monetary policy after US Treasury Secretary Bessent on Wednesday appeared to give the Fed marching orders on how much to cut interest rates. The dollar fell on Friday despite a +4 bp rise in the 10-year T-note yield, which supported the dollar's interest rate differentials.
The markets on Friday were awaiting the outcome of the Trump-Putin summit on Friday afternoon. The outcome could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
