Dollar Climbs Amid Central Banks' Caution and Euro's Decline

The U.S. dollar climbed against major currencies, including the euro, amid a cautious week for central banks. The euro dropped after Germany passed spending plans. Central banks, including the Fed, Bank of England, and Bank of Japan, maintained interest rates amidst global trade uncertainties.

The dollar experienced an uptick on Friday, climbing against major currencies, particularly the euro, which was poised for its first weekly decline this month. This development comes as central banks concluded a busy week, with lingering caution about the effects of a global trade war.

The euro saw a 0.15% drop, continuing its downtrend from the previous day. This decline followed Germany's approval of sweeping spending plans despite ongoing uncertainties about implementation timelines. Analysts suggest profit-taking as a key factor driving the euro's movement.

The week was marked by significant announcements from central banks, including the Federal Reserve, which indicated no rush to cut interest rates. Policymakers face challenges navigating the impact of trade tariffs proposed by President Trump, with a new round of tariffs expected soon.

(With inputs from agencies.)