The Federal Reserve, the European Central Bank and the Bank of England are set to announce their interest rate decisions next week, as policymakers continue efforts to curb economic activity by raising interest rates to control inflation.
Traders and investors are awaiting any indications that the Federal Reserve is willing to stop raising interest rates.
price movements
The dollar fell 0.37% to 1.05435 against the euro by 15:45 GMT, while it rose 0.13% to 1.2228 against the British pound.
The Japanese yen rose 0.07 percent to 136.405 against the dollar.
US monthly consumer price inflation data is due next week, the day before the Federal Reserve’s monetary policy meeting on December 14, which could be pivotal in determining the long-term outlook for monetary policy.
At the same time, oil prices fell below $80 a barrel for the first time since the Ukraine crisis erupted in late February, as concern grew about the impact of the economic slowdown on global energy demand.
Brent crude futures fell to around $78 a barrel, nearly halving from a 14-year high of $139.13 a barrel in early March.
And with lower energy prices, expectations about inflation have also receded.
That, along with fading expectations that the Federal Reserve will continue to raise interest rates at the same sharp pace, has caused the dollar to drop 6.2 percent so far this quarter.
According to Refinitiv data, these factors put the dollar on track for its worst quarterly performance since the third quarter of 2010, when it fell 8.5 percent, and on track for its worst fourth-quarter performance since 2004.
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