Khaberni - On Friday, the dollar is heading towards suffering its worst weekly loss since late July as traders intensify their bets on further monetary easing next month, while liquidity decreased due to the Thanksgiving holiday in the United States.
The dollar index, which measures the performance of the American currency against six major currencies, rose 0.1% in recent trading to 99.624, achieving some gains after declining for five days in its worst weekly loss since July 21.
According to CME's FedWatch tool, there is an 87% chance of a 25 basis point cut in the U.S. interest rates at the Federal Reserve's policy meeting on December 10, compared to 39% a week ago.
The yield on 10-year U.S. Treasury bonds rose 0.8 basis points to 4.0037% in recent trading, rebounding after a five-day fall that briefly surpassed the four percent threshold twice.
In Asia, the yen swung between gains and losses after a period of decline.
In one of the trades, it fell 0.1% to 156.385 yen against the dollar. The Japanese currency briefly soared after reports of consumer prices in Tokyo rising by 2.8% in November, a slightly faster pace than economists had predicted, exceeding the Bank of Japan's target rate of two percent.
Analysts from Capital Economics wrote in a research report "With ongoing labor market issues and core inflation excluding fresh food and energy remaining above three percent currently, the Bank of Japan will resume tightening over the next couple of months... The result is that the case for tightening monetary policy remains in place."
The yen is heading for a decline for the third consecutive month as the Japanese Prime Minister announced a stimulus package worth 21.3 trillion yen ($135.40 billion), while the Bank of Japan refrained from raising interest rates even as inflation exceeded the target rate.
The euro remained stable at 1.1600 dollars unchanged so far in Asia. Ukrainian President Volodymyr Zelensky said yesterday Thursday that delegations from his country and the United States will meet soon to work on a formula discussed in Geneva talks to end the war with Russia and provide security guarantees for Kyiv.
The British pound fell 0.1% to 1.323 dollars so far during the day but is on track to record its best weekly performance since early August after the British Finance Minister Rachel Reeves unveiled plans on Wednesday to increase taxes by 26 billion pounds sterling ($34 billion).
The Australian dollar advanced 0.1% to 0.6536 dollars in early trading after data showed an increase in private sector credit by 0.7% in October compared to the previous month.
The yuan in offshore trading stood at 7.074 against the dollar, stable in early Asian trading and on track towards its best monthly performance since August.
The New Zealand dollar fell 0.1% to 0.5725 dollars at the end of a week that saw its largest rise since late April.
