He global dollar was headed this Friday for its best weekly performance in a month, as investors incorporated into their prices the possibility that the United States Federal Reserve (Fed) cut rates more slowly in 2025.
The US currency remained firm against the euro and to swiss franc after the rate cuts made by those central banks a day earlier, and rose against the yen after reports that the Bank of Japan (BoJ) could forgo a rate hike at its meeting next week, Reuters reported.
He dollar indexwhich measures the currency against six others, was trading stable at 106.94, but is still headed for a weekly gain of almost 1%, the largest in a month.
US data on Thursday showed that the labor market is gradually cooling in line with expectations, while the inflation of producer prices helped reinforce the scenario of a cut in the Fed next Wednesday and a slower pace of reductions in 2025.
“What is clear from recent Fed speakers and the flow of data is that progress toward the inflation target has slowed and the economy has continued to work, therefore policymakers can afford to take a more cautious approach to easing in 2025,” said Rodrigo Catril, senior currency strategist at the National Australia Bank.
San Francisco Federal Reserve President Mary Daly, for example, said this month that she had no problem cutting rates in December, but advocated for “a more thoughtful and cautious approach” to future cuts.
He dollar rose 0.5% to 153.465 yen, its highest level since late November. The yen has been the worst performer this week against the dollar, which has gained 2% against the Japanese currency.
In Europethe pound fell after data showed the US economy United Kingdom It contracted unexpectedly in October, adding to signs of a bigger-than-expected slowdown. The National Statistics Office said the economy contracted 0.1% in October, compared with forecasts in a Reuters poll for growth of 0.1%.
The pound sterling It was down 0.2% at $1.2647, near its lowest level since the beginning of the month. Against the euro, it was up 0.48% at 82.985 pence, but still not far from its highest level since June 2016, when the United Kingdom voted to leave the euro. European Union (EU).
The euro cut its previous losses against the dollar and advanced 0.26% to $1.0493. He European Central Bank (ECB) cut rates by 25 basis points on Thursday and left the door open to further easing.
He swiss franc remained under pressure after the central bank’s surprise half-percentage point cut in interest rates the previous day. The dollar rose 0.1% to 0.8935 francs, while the euro rose 0.4% to 0.9375 francs.
Rate cuts and the threat of U.S. tariffs have stuck the Canadian dollar at its lowest level in four and a half years.
He chinese yuan It remained at 7.2826 per dollar in the offshore market. Reuters reported this week that China is considering allowing its currency to fall further to counter the impact of a possible trade war with the United States.
Source: Ambito
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