The dollar headed for its largest weekly fall versus the euro in two-and-a-half months on Friday as signs of cooling inflation and a softening U.S. economy raised the prospect of rate cuts.
The dollar headed for its largest weekly fall versus the euro in two-and-a-half months on Friday as signs of cooling inflation and a softening U.S. economy raised the prospect of rate cuts.
The euro is up 0.9% on the dollar this week, has broken above resistance around $1.0855 and traded as high as $1.0895 in the wake of U.S. inflation posting a slowdown.
"(Besides inflation) a lot of activity data has been cooling off," said Westpac strategist Imre Speizer, contributing to selling of the dollar.
The New Zealand dollar was last steady at $0.6120 with traders looking ahead to next week's central bank meeting, where the official cash rate is expected to stay at 5.5%.
Persons:
Imre Speizer, Sterling
Organizations:
Federal, Westpac, New, U.S, Aussie, New Zealand
Locations:
New Zealand