Dollar to weaken less than expected next year
The U.S. dollar pulled back from a two-year high on Friday, but was heading for its third-straight week of gains, with data showing a slowdown in inflation two days after the Federal Reserve cut interest rates and indicated inflation was stubborn enough to scale back cuts in 2025.
The dollar was down 0.72% against a basket of six other currencies at 107.64 after spiking as high as 108.54 - its highest level since November 2022. It was set to end the week 0.72% higher.
The dollar weakened 0.79% to 0.892 Swiss francs , on track for a weekly loss.
The euro edged higher after dipping to a one-month low of $1.03435 on the session, on track for its third-straight week of losses, weighed down partly by Trump's comments that the European Union must purchase more U.S. oil and gas to make up for its "tremendous deficit" with the world's largest economy, or face tariffs. It was last up 0.76% at $1.044175.
The dollar dropped to a five-month low of 157.93 Japanese yen after the Bank of Japan left interest rates unchanged. It was last down 0.89% at 156.01 yen.
Sterling dipped to a one-month low of $1.2475 but was last up 0.77% at $1.25990, still on track for a third straight week of losses. The Bank of England kept interest rates on hold on Thursday.
The dollar weakened 0.18% to 7.295 Chinese yuan on the offshore market. The Australian dollar weakened 0.43% to $0.6263, while New Zealand's dollar strengthened 0.53% to $0.566.
Source: Reuters
