The US dollar index remained stable around 104.3 on Friday as investors anticipated the latest report on the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation. Recently, the Fed adjusted its inflation forecast upward, expressing concerns about the effects of tariffs and creating uncertainty about the potential for further interest rate reductions. On Thursday, the dollar experienced a decline due to increasing economic concerns within the US, with markets preparing for incoming tariffs announced by President Donald Trump. These pending reciprocal and automotive tariffs, scheduled to be implemented in the coming week, have intensified apprehensions about possible retaliatory actions from major trading partners. In the realm of monetary policy, Richmond Fed President Tom Barkin commented that the central bank's "moderately restrictive" stance remains appropriate, given the current high level of economic uncertainty and rapid policy changes. The US dollar managed to hold its position against most major currencies while showing strength against the Australian and New Zealand dollars.