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Dollar set to end week higher
The dollar retreated from a two-year high on Friday but was on track for a third weekly gain after data showed inflation eased two days after the Federal Reserve cut interest rates.
The dollar index fell 0.47 percent against a basket of six major currencies to 107.95. It had earlier in the day hit a two-year high of 108.54. The dollar index is on track for a weekly gain of 1 percent.
The Commerce Department data on Friday showed the personal consumption expenditures price index, the Fed’s preferred inflation gauge, rose 0.1 percent in November after an unrevised 0.2 percent gain in October.
But in the 12 months through November, the PCE price index rose 2.4 percent compared with a 2.3 percent increase in the year through October.
The U.S. Federal Reserve cut interest rates by 25 basis points on Wednesday, with officials signaling a slower pace of rate cuts in 2025, as inflation remains above target despite its recent downward trajectory.
A partial government shutdown will begin if Congress fails to extend a deadline to pass a spending bill backed by President-elect Donald Trump by midnight on Friday. The bill failed to secure enough votes to pass the House of Representatives on Thursday.
The dollar fell 0.5 percent to 0.894 Swiss franc, but was still on track for a second straight weekly gain.
