The dollar is headed for its largest weekly loss since mid-January on Friday, as investors anticipate that the Federal Reserve will not raise interest rates this month. This undermines demand for the American currency among buyers holding other currencies. The Australian dollar rose following a minimum wage increase that bolstered bets that the central bank will raise rates again next week.
The dollar index, which measures the performance of the U.S. currency against a basket of six currencies, fell 0.8% this week, marking its largest weekly loss since mid-January. In the latest trading, it recorded a decline of 0.1%.
The dollar climbed against the yen after experiencing its longest streak of daily losses against the Japanese currency since November, with four days of decline. In the latest trading, the dollar rose by 0.1% to 138.89 yen.
The euro steadied at $1.0769 after reaching a one-week high of $1.07685 on Thursday. The Australian dollar increased by 0.68% to $0.662.
