Dollar Slides Toward Worst Weekly Loss Since June as Traders Bet on Rate Cuts
The dollar is poised to close the year with an 8% decline, its steepest drop since 2017, now hovering NEAR September lows. With UK markets closed and holiday-thinned liquidity, attention shifts to January's U.S. economic data—particularly December jobs and inflation figures—which will dictate the Fed's next move.
Currency markets show growing risk appetite as the Australian dollar and Norwegian krone outperform. Treasury yields dip to 4.12%, reflecting steady demand despite the dollar's slump. Traders now price in a 90% chance the Fed holds rates in January, but expect two more quarter-point cuts by year-end.
Equities defy the dollar's weakness, with the S&P 500 hitting record highs. The Nasdaq and Dow post weekly gains exceeding 1%, signaling sustained bullish momentum.
