The US dollar index held its recent advance to around 103.8 on Friday as investors continued to assess the Federal Reserve's monetary policy stance. On Wednesday, the Fed kept policy unchanged but signaled two interest rate cuts this year.

The central bank also highlighted rising risks to growth, employment, and inflation in its latest economic projections. Meanwhile, Fed Chair Jerome Powell downplayed concerns over the inflationary impact of President Donald Trump's tariffs, calling them "transitory," but reiterated that the central bank is in no rush to cut rates further.

Traders are also bracing for the April 2 deadline of Trump's reciprocal tariffs on countries that have imposed levies on US goods. Moreover, the dollar strengthened as concerns over global growth and trade tensions weighed on other major currencies, keeping investors cautious.

Source : Trading Economics