Canadian News

U.S. Dollar Weakens, Yen Rises Amid Fed Rate Cut Expectation

The U.S. dollar weakened against its major counterparts in the Asian session on Friday. In contrast, the Japanese yen strengthened against its peers, as investors are upbeat about the rising prospects of an interest rate cut by the U.S. Fed next week, and probability of a series of interest rate cuts before the end of the year, in the wake of recent data on U.S. inflation.

While the data has seemingly reduced the likelihood the Fed will cut rates by 50 basis points next week, rates are still expected to be notably lower by the end of the year. CME Group's FedWatch Tool currently suggests rates will be lower by at least a full percentage point following the Fed's December meeting.

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by RTTNews Staff Writer

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