US dollar heads towards a weekly decline as US inflation down

US dollar is heading towards its largest weekly decline in months against the euro, yen and Swiss franc on Friday, as investors sell in anticipation of a cut of about 100 basis points in US interest rates next year.

According to Reuters, the dollar recorded 1.0854 against the euro, and fell 1.6 percent during the week, its largest decline since mid-July. It also fell 1.6% during the week to 0.8882 Swiss francs, and fell 0.6% against the Japanese yen to 150.53 yen.

Oil fell to its lowest levels in four months on Thursday, and Walmart said it would lower prices, adding to deflationary pressures that data this week showed had helped stabilize US consumer prices and convinced investors that inflation was falling and that raising interest rates was over. .

The British pound rose 1.5% this week to $1.2410. The Australian and New Zealand dollars lost some strength on Thursday after indications of a slowdown in the US economy that negatively affected commodity prices, but they are on their way to recording weekly gains.

Movements in Asian transactions on Friday were limited, and the Australian dollar traded for $0.6466, up 1.7% during the week, while the New Zealand dollar recorded $0.5960, up 1.2% during the week.

The Chinese yuan rose to 7.2447 against the dollar and is expected to record its best weekly performance in two months, and was traded near the highest level in three months.