Dollar heads for weekly loss, with easing monetary tightening ‎expected

US dollar hovered near its lowest level in three months today, Friday, on its way to recording a weekly loss, with investors preoccupied with anticipation of the possible retreat of the Federal Reserve from monetary tightening in December.

According to “Reuters”, the euro rose after the GfK Institute poll expected German consumer confidence to stabilize next month, supported by energy measures.

The dollar was struggling to make gains after trading weakly on Thursday due to the Thanksgiving holiday in the United States

While the risk-sensitive pound sterling was near its highest level in three months against the US currency.

“We are seeing positive risk sentiment for the third day in a row… I think that keeps the dollar pretty much lower across the board,” said Ray Atrell, head of foreign exchange strategy at National Australia Bank.

Minutes of the Federal Reserve’s November meeting, released earlier this week, showed that a “significant majority” of policymakers agreed that it would be appropriate to slow the pace of rate hikes soon.

The dollar index settled at 105.8, down 0.05 percent on Friday, against a basket of major currencies.

The euro rose 0.1 percent to $1.0420, on its way to a four-month high of $1.0481 hit last week. While the Japanese yen remained unchanged on Friday, at 138.63 per dollar

The New Zealand dollar fell 0.26 percent to $ 0.6248, but it remained close to its highest level in three months, which it recorded in the previous session.

While the Chinese yuan recorded in the latest foreign trade 7.1662 against the dollar, heading to incur losses for the second week, with continued fears related to the Corona virus.