The dollar index held steady around 108.6 on Friday, hovering near a 20-year high hit in the previous session and pausing its relentless rally, as two Federal Reserve policymakers nipped speculations for a bigger 100 basis point rate hike. Fed Governor Christopher Waller and St. Louis Fed President James Bullard said in separate statements that they favored another 75 basis point increase for July despite higher-than-expected inflation figures.
Latest data showed that US inflation surged 9.1% in June 2022 from a year ago, hitting its highest level since 1981 and piling pressure on the Federal Reserve to respond more aggressively. Still, the dollar was on track for its third straight weekly advance as it also benefited from safe-haven inflows spurred by growing fears of an economic slowdown.