US Dollar Index rebounds modestly as US Appeals court puts tariff-ban on hold

• The US Dollar attracts bids on Friday as US Appeals court temporarily halted lower court's decision of tariff injunction.
• The White House has stated that they will find a way to keep tariffs in existence.
• Investors await the US PCE inflation data for April.

The US Dollar (USD) recovers on Friday after a sharp sell-off the previous day, with investors remaining uncertain over the existence of majority of tariffs imposed by United States (US) President Donald Trump on all of his trading partners since his return to the White House this year.

During European trading hours, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, rises to near 99.50.

Investors start doubting the sustainability of reciprocal, fentanyl, and border negligence-related-tariffs as the US Court of International Trade strike them down on Wednesday after a plea from domestic small businesses, quoting them as a direct threat to their survival.

However, the Federal appeals court in Washington has issued a temporary stay on the International Trade court's decision of tariff injunction after consider the government's appeal.

Meanwhile, the White House is confident that they will mange to keep tariffs in any way. "You can assume that even if we lose [in court], we will do it [tariffs] another way," Washington trade negotiator Peter Navarro said, Reuters reported.

On the economic front, investors await the US Personal Consumption Expenditure Price Index (PCE) data for April, which will be published at 12:30 GMT. The core PCE inflation data, which is Federal Reserve's (Fed) preferred inflation gauge, is expected to have grown at a moderate pace of 2.5% on year, compared to the prior release of 2.6%. The impact of the inflation data is expected to be limited on the Fed's monetary policy outlook as officials seek more information to know whether tariffs will sustain and how much they will impact the economic outlook if they do.