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·         Dollar wallows near one-month low as strong euro, stock rally weigh

The dollar languished near its weakest level in a month against major peers on Friday, hurt by a stronger euro as traders bet on earlier European interest rate hikes and as an equity rally sapped demand for safer assets.

New Zealand’s dollar sagged amid a slide in consumer confidence, while cryptocurrency ether climbed to a record high.

The dollar index, which measures the currency against six main rivals including the euro, was little changed at 93.354, close to Thursday’s low at 93.277 — a level not seen since Sept. 27.

The euro was largely flat at $1.16855 after rising as high as $1.1692 overnight for the first time since Sept. 28.

 

Against the yen, another traditional safe haven, the dollar was mostly unchanged at 113.50, continuing to ease back gradually from the almost three-year high of 114.695 reached last week.

 

Foreign-exchange markets have become volatile around central bank activity. Big moves began Wednesday with hawkish comments from the Bank of Canada, and were followed on Thursday with an action by the Reserve Bank of Australia and the ECB’s remarks — all ahead of meetings next week of the U.S. Federal Reserve and the Bank of England.

 

The Fed is widely expected to begin to taper stimulus from next month, with interest rate lift-off following next year.

 

Traders will have their eyes on economic gauges from both regions later in the day, with Europe seeing a preliminary reading of the consumer price index, while the U.S. gets personal spending and income data.

 

Elsewhere, sterling was almost flat at $.1.37925 as it continued to fluctuate near a one-month high reached last week.

 

The pound has been buffeted recently by speculation over whether the Bank of England would proceed with an interest rate hike at its meeting next week.

 

·         China's yuan ticks up, set for biggest monthly rise since May

 

China's yuan edged higher against the dollar on Friday and looked set for the biggest monthly rise since May, but some investors were wary about any further upside in the local currency due to buying from

state-owned banks.

 

Markets also remain focused on policy meetings of the Federal Reserve and Bank of England next week for clues on the timing of rate tightening at major economies.

 

The Fed is widely expected to begin tapering its stimulus from next month, with interest rate lift-off following next year.

 

Reference: Reuters, CNBC