Dollar Stays Steady Amid Shifts in Global Currency Markets

The U.S. dollar remained largely unchanged on Friday as Treasury yields fell following a mild U.S. inflation report. The Federal Reserve's anticipated easing in September remains on track, supported by the June personal consumption expenditures (PCE) price index. Meanwhile, the yen surged, and other global currencies experienced slight fluctuations in response to economic policies and market conditions.

The U.S. dollar remained steady on Friday as Treasury yields dipped following a modest U.S. inflation report. The June personal consumption expenditures (PCE) price index rose 0.1%, in line with expectations, reinforcing the view of a stabilizing inflation environment.

Year-over-year, the PCE price index rose 2.5%, down from May's 2.6%, aligning with forecasted figures. With inflation pressures easing, Federal Reserve officials, meeting next week, may gain confidence that inflation is edging towards the central bank's 2% target, according to Steve Englander of Standard Chartered Bank.

The yen surged to a near three-month high, influenced by Bank of Japan interventions and expectations of a hawkish policy shift. Concurrently, other major currencies, including the euro and sterling, showed minor variations against the dollar. In the cryptocurrency space, bitcoin and ethereum saw notable gains.

(With inputs from agencies.)