The dollar is on track for its largest weekly decline against the euro, yen, and Swiss franc in months as investors sell in anticipation of a 100 basis points cut in US interest rates next year.
Over the past week, the dollar made some significant movements in the currency market. It recorded a decline of 1.6 percent against both the euro, with a rate of 1.0854 euros to a dollar, and the Swiss franc, with a rate of 0.8882 Swiss francs to a dollar. This marks the largest weekly decline for the dollar since mid-July. Additionally, the dollar fell by 0.6 percent against the Japanese yen, with a rate of 150.53 yen to a dollar.
Oil prices dropped to their lowest levels in four months on Thursday. Additionally, Walmart announced that it would lower its prices, further contributing to deflationary pressures. Recent data has shown that these deflationary pressures have stabilized US consumer prices, leading investors to believe that inflation is decreasing and that interest rates will remain steady.
The British pound experienced a 1.5 percent increase this week, reaching $1.2410. However, the Australian and New Zealand dollars saw a slight decline on Thursday due to indicators of a slowdown in the US economy, which negatively impacted commodity prices. Nevertheless, both currencies are poised to record weekly gains.
Movements in Asian transactions on Friday were limited. The Australian dollar traded at $0.6466, up 1.7% during the week, while the New Zealand dollar recorded $0.5960, up 1.2%.
The Chinese yuan reached its highest level in three months against the US dollar, trading at 7.2447, with expectations of achieving its best weekly performance in two months.
