The dollar declined, approaching a two-month low against major currencies on Friday, while the euro hovered near a one-year high, as traders increased expectations for an imminent end to the US interest rate hike cycle amid signs of slowing inflation. Data from the US Labor Department released on Thursday showed a significant drop in the Producer Price Index, the largest decrease in three years, following inflation data that indicated a moderation in consumer prices.
The dollar fell again after the release of yesterday's data, dropping its index to the lowest level in two months at 100.84 in the previous session. It registered 100.95 in early Asian trading on Friday, on track for a weekly decline of more than one percent, the largest drop since January.
The euro rose by 0.07 percent to $1.1055 after reaching a one-year high of $1.1068 on Thursday. The British pound was also close to a ten-month high, recording $1.2526 in the latest trading. The Australian dollar remained supported, trading around $0.6788 on Friday, aided by positive Chinese data alongside a strong employment report for March in Australia. The Australian and New Zealand dollars are often used as alternative liquidity to the Chinese yuan.
The New Zealand dollar also rose by 0.13 percent to $0.6305 in Asian trading. The Japanese yen increased slightly to 132.44 per dollar, while the offshore yuan rose about 0.1 percent to 6.8635 per dollar.
