The U.S. dollar slips edged lower on Thursday after retail giant Walmart (NYSE: WMT) issued a sales forecast that fell short of expectations, prompting concerns about the resilience of the American consumer.
As of 10:40 ET (15:40 GMT), the U.S. dollar index, which tracks the greenback against a basket of major currencies, dipped by 0.5% to 106.64. The euro gained 0.5% against the dollar, reaching $1.0469, while the British pound advanced 0.4% to $1.2637.
Walmart, a leading indicator of consumer spending trends in the U.S., signaled a softer growth outlook for 2025. Recent economic indicators have also shown a drop in monthly retail sales and a surprising decline in consumer sentiment for February. These figures, coupled with stronger-than-expected inflation data from January, suggest that consumers may be growing more cautious, particularly in response to President Donald Trump’s policy decisions, including proposed widespread tariffs.
The Arkansas-based retailer projected annual consolidated net sales growth of 3% to 4%, falling short of analysts’ expectations of a 4% rise, according to data from LSEG cited by Reuters. Walmart also attributed part of this outlook to the absence of a leap year in 2025, which had previously provided a slight sales boost. For the current quarter, Walmart expects adjusted earnings per share of $0.57 to $0.58, slightly below Wall Street estimates, citing unfavorable currency effects. Sales are expected to grow in the range of 3% to 4% for the quarter.
Investor sentiment was also influenced by Trump’s recent statements regarding potential tariffs of approximately 25% on automobile, semiconductor, and pharmaceutical imports. Some analysts, however, believe these announcements may be part of a broader negotiating strategy rather than imminent policy shifts.
Meanwhile, minutes from the Federal Reserve’s January 28–29 meeting revealed hesitancy among central bank officials regarding future interest rate cuts, citing inflationary pressures that could stem from Trump’s trade and immigration policies.
In Asia, the Japanese yen appreciated by 0.6% against the U.S. dollar slips, with the USD/JPY pair trading at 150.52. The currency strengthened following comments from a former Bank of Japan official suggesting that an interest rate hike could be on the table in May, depending on domestic political developments and potential economic effects of Trump’s tariffs.
The Chinese yuan, meanwhile, remained stable in onshore trading, with the USD/CNY pair showing little movement despite Trump’s assertion late Wednesday that a new trade agreement with China could be reached soon.
