A nnual inflation in the U.S. rose to 2.7% in June, up from 2.4% in May, according to new data from the Consumer Price Index (CPI). Core inflation—which excludes food and energy—also increased slightly to 2.9%, up from 2.8% the month prior.

The dollar’s recent decline signals a loss of faith from global investors in the United States’ ability to honor its obligations. Harvard University’s Ken Rogoff says political dysfunction in Washington and Trump’s aggressive trade war fuel economic uncertainty and undermine America’s soft power in the world.

The dollar edged up across the board on Friday as U.S. President Donald Trump's ramped-up tariffs on Canada and other trading partners sparked a flight to safety.Trump issued a letter late on Thursday that said a 35% tariff rate on all imports from Canada would apply from August 1.

TSMC, the world's main producer of advanced AI chips, is expected to post a 52% jump in second-quarter profit to record levels, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook.

US stocks are little changed as investors shrug off more tariff threats from Trump. Investors await inflation data and earnings for direction.

The U.S. dollar rose on Friday on more signs of upheaval in the global trade landscape, as U.S. President Donald Trump announced more tariffs and said he planned to impose blanket levies of 15% or 20% on most trade partners.