The dollar fell 1.6% against the euro this week (Shutterstock)
The dollar is heading for its biggest weekly decline in months against the euro, yen and Swiss franc on Friday, as investors sell-off in anticipation of a 100 basis point cut in U.S. interest rates next year.
The dollar hit 1.0854 against the euro, falling 1.6% this week, its biggest decline since mid-July.
The dollar fell 1.6% this week to 0.8882 Swiss francs, and fell 0.6% against the Japanese yen to 150.53 yen.
Oil fell to a four-month low on Thursday, and Walmart said it would cut prices, adding to deflationary pressures that data this week showed helped stabilize U.S. consumer prices and convinced investors that inflation was falling and that the rate hike was over.
Sterling rose 1.5% this week to $1.2410.
The Australian and New Zealand dollars lost some strength on Thursday after signs of a slowing U.S. economy weighed on commodity prices, but are on track for weekly gains.
Movements in Asian trading on Friday were limited, with the Australian dollar trading at $0.6466, up 1.7% for the week, while the New Zealand dollar was at $0.5960, up 1.2% during the week.
The Chinese yuan also rose to 7.2447 against the dollar, while the Chinese currency is expected to record its best weekly performance in two months, trading near a three-month high.
Source: Reuters