Dollar slips on U.S. rate cut bets; Yen firms as Japan inflation picks up

Dollar dips on peak rate bets while yen firms as Japan inflation accelerates, stoking speculation of BOJ stimulus rollback.

Berto Tordecilla

Berto Tordecilla

This news article is older than 30 days.

The dollar edged lower on Friday as investors continued to bet that U.S. interest rates have peaked. Meanwhile, the yen firmed after data showed Japan’s core inflation accelerated, reinforcing expectations the Bank of Japan may soon roll back stimulus.

Article Continues Below Advertisement

The dollar index, measuring the greenback against six major peers, eased 0.077% to 103.69. It is down 2.8% for November, on track for its biggest monthly drop in a year amid growing convictions that the Federal Reserve is finished hiking rates and may cut them in 2024.

Markets have pared back forecasts for Fed cuts next year. Analysts say the Fed, ECB and BoE will likely reduce rates around mid-2024.

Read More News:
Gold trades sideways amid thin volumes

The yen steadied at 149.58 per dollar after Japan reported a modest pickup in core consumer price growth, fueling views that stubborn inflation may prompt the BOJ to tighten policy.

The euro edged up 0.05% to $1.0911 following data confirming Germany’s economy contracted slightly last quarter. The figures suggest recession may be milder than feared.

Sterling was little changed at $1.2541 ahead of a shortened U.S. session.

Don't Miss Out

Stay ahead with our latest news and analysis. Get the latest content directly to your inbox in one easy step.

Compare Investing Platforms

eToro

Winner of #1 Investor Community award by StockBrokers. Your capital is at risk.

Learn More
AJ Bell

Buy from 2000+ Funds & Shares in a low-cost tax-free ISA. Your capital is at risk.

Learn More