Dollar set to snap 5-week streak but yen hits lowest in almost 3 years
The dollar headed for its first weekly decline versus major peers since the start of last month, falling back from a one-year high as traders turned their attention to when the U.S. Federal Reserve will start raising interest rates.
The dollar index, which measures the greenback against six rivals, slipped 0.1% to 93.945 on Friday. It is on track for about a 0.19% decline this week despite hitting the highest since Sept. 25 of last year at 94.563 on Tuesday.
Improved market sentiment, which has lifted global stocks, commodity prices and bond yields, is also weighing on the safe-haven dollar.
Only against the yen - another currency seen as a haven - has the dollar managed to maintain the momentum of the past five weeks, rising 0.33% on Friday and touching 114.075 yen for the first time since December of 2018.
The euro edged up 0.08% to $1.16065 after touching $1.1624 on Thursday for the first time since Sept. 4.
Sterling was 0.1% higher at $1.36835 following its climb to the highest since Sept. 24 at $1.3734 overnight.
China's yuan on course for 3rd weekly gain, investors await Q3 GDP
China's yuan inched higher against the dollar on Friday and looked set for a third straight weekly gain, as investors awaited key economic data due next week for more clues on the policy outlook.
While growth momentum is clearly slowing, compounded by recent widespread power shortages, traders said investors were unwilling to make huge bets on either side of the yuan before China's September and Q3 GDP data next Monday.
Premier Li Keqiang said this week that China has ample tools to cope with economic challenges despite slowing growth, and the government is confident of achieving full-year development goals.
In the spot market, onshore yuan opened at 6.4350 per dollar and was changing hands at 6.4361 at midday, 43 pips firmer than the previous late session close.
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