US Dollar Index falls 0.2% to 99.75 as traders reduce Fed rate hike expectations following softer inflation data.
The US Dollar Index (DXY) extended losses Friday, trading near 99.75 and down 0.2% on the day. The decline follows weaker-than-expected inflation signals, prompting investors to pare back bets on an imminent Federal Reserve rate hike.
The index remains on track for modest weekly gains despite the pullback, supported by mixed cues including persistent geopolitical risks and elevated oil prices. Markets still price in a higher probability of a Fed rate increase by year-end.
Technical indicators suggest further downside pressure, with the RSI near 40 and the MACD slipping below zero. The index failed to break above a recent trading range, reinforcing a bearish outlook.