The dollar index steadied around 105.6 on Friday as investors stayed on the sidelines ahead of a key US inflation reading for March that could provide more clues on the path for Federal Reserve monetary policy. On Thursday, the index slid to near two-week lows as data showed that the US economy expanded an annualized 1.6% in Q1 2024, well below forecasts of 2.5% and the lowest growth in about two years. Meanwhile, the same report showed that underlying inflation accelerated in the first quarter, while the latest jobless claims continued to point to a tight labor market, clouding the outlook for potential Fed rate cuts this year. The dollar nursed losses against most major currencies, but hovered 34-year highs against the yen as the Bank of Japan decides on monetary policy.
