The dollar index stays firm above 99 mark at an over two-month high on Friday as US data showed signs of elevated inflation in future that could refrain Fed from a near term rate cut. The US Personal Consumption Expenditure (PCE) Price Index report suggested that price pressures would increase in the second half of 2025 and delay the US Fed interest rate cuts. PCE inflation accelerated to 2.6% on year, outrunning the expected hold at 2.5%. Market sentiments also remained cautious after US President Donald Trump imposed higher tariff rates on US trading partners set to go into effect on August 1. Investors now shift their focus toward the US nonfarm payrolls, due later in the day. The dollar index that measures the greenback against a basket of currencies currently stands at 99.75.

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