The dollar index held below 109 on Friday and was set for its first
The dollar index held below 109 on Friday and was set for its first weekly decline in seven, coming under pressure this week as a surprise decline in US core inflation boosted bets on further Federal Reserve interest rate cuts this year. Fed Governor Christopher Waller added to the sentiment on Thursday, suggesting that three or four rate reductions are still possible if economic data continues to weaken. Additionally, December’s US retail sales data came in below expectations, although it still indicated strong consumer spending. Markets are now pricing in 41 basis points of total easing from the Fed this year, up from the 27 basis points seen earlier this month. The dollar weakened across the board this week, with the most notable depreciation against the yen, driven by increasing speculation that the Bank of Japan may raise rates next week.(Cay)
Source: Trading Economi
