The U.S. dollar strengthened on Friday, buoyed by fresh economic data showing a rise in import prices and declining consumer sentiment. The greenback is now on track to post gains for the fourth consecutive week.
According to the U.S. Labor Department, import prices increased by 0.1% in April, reversing a 0.4% decline in March. The rise was largely driven by higher costs for capital goods, which offset a drop in energy prices. Analysts surveyed by Reuters had expected a 0.4% decline in import prices, which do not include tariffs, reports news agencies.
The dollar’s upward momentum was further supported by data from the University of Michigan, which showed consumer confidence slipping. The preliminary consumer sentiment index dropped to 50.8 in May, down from April’s final reading of 52.2 and well below market expectations of 53.4. Meanwhile, consumers’ 12-month inflation expectations rose to 7.3%, up from 6.5% in the previous month.
These mixed signals — rising import costs and growing inflation expectations alongside weakening sentiment — have strengthened the case for a cautious monetary outlook, helping to lift the dollar further in global markets.
