U.S. Dollar Slides Amid Shifting Economic Tides

The U.S. dollar weakened against key global currencies following mixed economic data. Retail sales showed minimal growth, while the producer price index fell due to reduced demand in tourism-related sectors. Despite temporary trade relief with China, uncertainty remains as experts foresee a slow growth quarter.

The U.S. dollar depreciated against numerous currencies on Thursday, influenced by economic indicators revealing a slowdown in retail spending in April, dampened by economic uncertainties. The Commerce Department noted a modest 0.1% rise in retail sales last month, following a 1.7% surge in March.

March's upswing was partially driven by forward purchases ahead of President Trump's tariff announcement. Additionally, the Labor Department reported a 0.5% drop in the producer price index for final demand last month. Lower demand in the travel sector, influenced by Trump's trade policies and geopolitical tensions, contributed to this decline.

While weekly jobless claims met expectations, limited job openings persist. The dollar index fell by 0.25%, and the euro appreciated by 0.27%. Although trade tensions with China have eased, market speculation on Federal Reserve rate cuts continues, with lessened expectations of near-term cuts. Fed Chair Powell emphasized reviewing policy strategies amid inflation concerns.

(With inputs from agencies.)