Dollar Index at 6-Month High
The dollar index climbed toward 100.3 on Friday, its highest level since mid-May, and is on track to end the week up nearly 1%, marking its first weekly gain in three. The move was supported by a renewed risk-off tone in AI-related stocks and cryptocurrencies.
At the same time, traders ramped up bets on a Federal Reserve rate cut in December after New York Fed President John Williams signaled the central bank may have room to ease policy soon as the labor market softens. The probability of a December cut has surged to around 71%, up sharply from below 30% earlier in the week.
The dollar strengthened against the euro and the Swiss franc but weakened against the yen, as Japanese officials intensified verbal intervention to slow the currency’s depreciation.
Source: Tradingeconomics