The U.S. dollar was broadly firmer on Friday with the euro pulling further away from a five-month peak as markets grappled with escalating global trade tensions and risks of a sharp economic downturn.

Tariffs have historically triggered market volatility. When the Trump administration announced tariffs on China, markets dropped sharply before making a near-total recovery that same day. Investors should focus on long-term goals and consult their financial advisors before making portfolio changes.

Japan's union wage talks, while the pound dropped amid UK economic contraction. Investors faced trade tensions particularly between the EU and U.S. Despite early weekly losses, the dollar regained strength.

The U.S. dollar edged higher against major currencies including the yen and the euro on Wednesday as data showing a slowdown in inflation was eclipsed by worries about potential inflationary implications of President Donald Trump's tariffs.

The U.S. dollar strengthened on Friday as escalating global trade tensions and economic slowdown fears weighed on markets. The euro slipped to $1.0847, retreating further from Tuesdays five-month peak,