Dollar down with expectation of US rate hike end ‎

The dollar fell, approaching the lowest level in two months against major currencies today, Friday, while the euro hovered near the highest level in a year, as dealers’ expectations increased for an imminent end to the cycle of raising US interest rates, amid signs of slowing inflation.

According to “Reuters”, data from the US Department of Labor showed on Thursday that the producer price index decreased by the most in nearly three years last month, a day after inflation data indicated a moderation in consumer prices.

The dollar fell again after the data was released on Thursday, and its index fell to a two-month low of 100.84 in the previous session.

It recorded 100.95 in early Asian trading on Friday, and is heading to record a weekly decline of more than 1 percent, which is the largest decline since January.

Euro rose 0.07 percent to $1.1055, after climbing to a one-year high of $1.1068 on Thursday.

British pound sterling was also close to its highest level in 10 months, and recorded in the latest transactions $ 1.2526.

Australian dollar remained supported and reached around $0.6788 on Friday thanks to positive Chinese data as well as the strong March employment report in Australia. The Australian and New Zealand dollars are often used as an alternative to the Chinese yuan.

New Zealand dollar also rose 0.13 percent to $0.6305 in Asian trading.

Japanese yen increased slightly to 132.44 per dollar, while the offshore yuan rose about 0.1 percent to 6.8635 per dollar.