US Dollar Set for Strongest Weekly Gain in Four Months

QNA/APP

Singapore: The US dollar is on track for its biggest weekly gain since October, buoyed by expectations that the Federal Reserve will maintain a tighter monetary policy stance.

The dollar maintained its gains in early Asian trading, putting pressure on major currencies. The British pound hovered near a one-month low at $1.3457 against the greenback.

The dollar index, which tracks the US currency against a basket of major peers, reached 97.89 — its highest level in nearly a month — putting it on course for a weekly gain of over 1%, its strongest performance in more than four months.

Markets are closely watching the upcoming release of the US core personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure, along with fourth-quarter GDP data, both expected to influence the dollar’s short-term direction.

Among other currencies, the Australian dollar slipped 0.08% to $0.7055 but remained on track for a weekly decline of around 0.2%, amid expectations of tighter domestic monetary policy. The New Zealand dollar fell 0.12% to $0.5967, while the Japanese yen edged down 0.05% to 155.08 per dollar.