USD regains ground after a tech-led equity decline sparks modest risk-off flows amid resilient US economic data.
The US Dollar recovered part of this week’s losses as a tech-driven equity selloff prompted modest safe-haven demand. The move follows a broader market shift amid concerns over valuations and economic resilience.
US retail sales rose 0.2% month-over-month in June, matching consensus, while the control group—excluding cars, gas, and building materials—climbed 0.5%. Real-term retail sales remain solid, supported by a 0.4% decline in headline CPI for the month.
Analysts expect the USD to edge higher in the coming months, citing US economic outperformance, hawkish Federal Reserve policy expectations, and strong foreign demand for long-term US securities.