Sharjah 24 – BNA: The dollar headed for its longest stretch of weekly losses in almost three years on Friday, as traders ramped up expectations of an imminent end to the U.S. Federal Reserve's rate-hike cycle following signs that inflation may be cooling.
Data on Thursday showed US wholesale prices, as measured by the producer price index (PPI), fell by the most in nearly three years last month, a day after data showed the consumer index - CPI - was also softening as expected, Reuters reported.
The dollar index, which measures the performance of the U.S. currency against six others, slid to a roughly one-year low of 100.78.
It was last flat at 101.0, and was headed for a weekly decline of more than 1%, its steepest drop since January. This would mark a fifth straight weekly loss, the longest such stretch since July 2020.
"The CPI rise was close to expectations, so it's a significant market reaction for what was a fairly consensus outcome and I think that is a measure of how negative sentiment is on the dollar at the moment," RBC Capital Markets chief currency strategist Adam Cole said.
"It’s kind of hard to fight that, even if you don’t really agree with it, which we don’t," he said.
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