Currency markets reflect uncertainty over U.S. interest rates; eurozone recovery signals

Shafaq News/ The U.S. dollar faced pressure on Friday, influenced by uncertainties surrounding the trajectory of U.S. interest rates. Meanwhile, the euro held onto gains as data suggested the economic decline in the eurozone might be easing.

The dollar index, gauging the U.S. currency against six counterparts, dipped 0.029 percent to 103.73, near a two-and-a-half-month low it touched earlier in the week. The euro reached $1.0904 after a 0.16 percent overnight rise, as preliminary surveys indicated that Germany's recession might be less severe than expected.

The British pound and several other currencies showed varied movements amid the market's limited liquidity due to the Thanksgiving holiday.

The dollar's recent weakening trend persisted during the month, declining by 2.8 percent, on track for its weakest monthly performance in a year.

The shift reflects growing sentiments that the U.S. Federal Reserve has concluded its interest rate hikes and may commence reductions next year. Currency trading is anticipated to remain subdued, with U.S. markets closed on Thursday and a shortened session on Friday.

The Japanese yen rose slightly against the dollar to 149.49, moving away from its 33-year low of 151.92. Meanwhile, the British pound increased to $1.2539, and the Australian and New Zealand dollars experienced modest gains