The US dollar climbed higher on Friday and is now heading for its biggest weekly gain in more than two months. Rising energy prices and ongoing problems in global shipping have increased concerns about inflation, giving more strength to the dollar.
The dollar index is expected to finish the week up by more than 1%, marking its strongest weekly performance since early March 2026.
The stronger dollar pushed the Japanese yen lower, with the yen falling to 158 against the dollar. In early Asian trading, the yen touched 158.45, putting it on track for a weekly loss of more than 1%. Traders are also watching closely for any possible market intervention from Tokyo.
The euro also slipped slightly, falling 0.04% to $1.1662 and heading toward a weekly decline of more than 1%.
The dollar continued gaining momentum after new US economic data pointed to rising inflation pressures. Reports released on Thursday showed that retail sales in the United States kept growing in April, while weekly jobless claims showed the labor market remains stable.
