Dollar Dips as Supreme Court Overturns Trump's Tariffs

The U.S. dollar declined amid volatile trading following a Supreme Court ruling that overturned President Trump's tariffs, citing overreach of authority. Economic data indicated lower-than-expected growth, with market reactions focused on potential government and Federal Reserve responses.

The dollar fell on Friday, poised to break a four-day winning streak, following the U.S. Supreme Court's decision to strike down President Trump's broad tariffs. The court ruled 6-3, with Chief Justice John Roberts asserting Trump's use of a 1977 emergency law exceeded his powers.

Initially, the dollar saw gains after economic data revealed higher-than-anticipated inflation, though economic growth lagged behind expectations. The U.S. Commerce Department reported a 1.4% GDP increase, a stark contrast to the predicted 3% rate. Analysts pointed to the government shutdown as a negative factor.

President Trump announced plans to impose a 10% global tariff under a different trade law and promised further inquiries. Simultaneously, market expectations for a Federal Reserve rate cut waned slightly. Increased tensions between the U.S. and Iran and ongoing UK economic developments also influenced the week's trading activities.

(With inputs from agencies.)