The Japanese yen rose Friday, July 29, set for its biggest weekly gain in 4 months once morest the dollar on bets that US interest rates are nearing a peak following data on Thursday showed that the world’s largest economy unexpectedly contracted in the second quarter.
Futures markets expect US interest rates to peak by December and the Federal Reserve to cut rates by 50 basis points next year to support a slowdown.
the growth.
This rapid decline in interest rate hike expectations was a major driver of the dollar’s weakness once morest the yen, with the US currency depreciating nearly 2.5% once morest its Japanese counterpart this week, the largest weekly decline for the dollar since late March.
Broadly speaking, the US dollar fell slightly Friday, July 29th, and the dollar index is heading for its second consecutive weekly loss.
The index fell 0.5% to 105.680, its lowest level since July 5.
The euro’s struggle to stay above the $1.02 level has reduced risk appetite amid fears the eurozone economy might slip into recession by the end of the year.
Safe haven currencies such as the Swiss Franc saw demand on Friday.
