Interest rate cut prospects weaken as the dollar drops 0.24% over the week
The dollar stabilized but recorded a drop of 0.24% over the week, amid weak U.S. inflation figures and diminished chances of interest rate hikes by the Federal Reserve, despite escalating tensions in the Middle East that boosted demand for the safe haven currency. Oil prices approached their highest levels. Meanwhile, the euro increased by 0.29%, and the British pound gained up to 0.56%. The yen remained near its lowest level in 40 years at 162.39 against the dollar, as markets await an official intervention from Tokyo. Data showed a stable U.S. labor market and a slowdown in inflation, reinforcing expectations that the Federal Reserve will keep interest rates unchanged for now, with a possibility of hikes if inflation does not improve in the near term.
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