The dollar hovered at 15-month lows on Friday after a steep dive overnight, as markets wagered the Federal Reserve was close to the end of its rate hike cycle due to easing inflation.

The dollar index , which measures the U.S. currency against six major rivals, stood at 99.71 in early Asian hours, its lowest since April 2022. The index is on course for its worst week since November.

U.S. producer prices barely rose in June and the annual increase in producer inflation was the smallest in nearly three years, data showed on Thursday, a day after consumer prices rose modestly last month as evidence mounts that the world's largest economy had entered a phase of easing inflation.

Meanwhile, the Australian dollar eased 0.16% to $0.688 after Michele Bullock was appointed head of Australia's central bank on Friday, becoming its first female governor as it undertakes a sweeping reorganisation.

The euro touched a fresh 16-month peak of $1.1229 in Asian hours before easing to $1.1222, while sterling last fetched $1.3119, down 0.11% on the day. The pound broke above $1.30 on Thursday for the first time since April 2022.

The Japanese yen strengthened 0.23% to 137.71 per dollar and is on course for its best week against the dollar since January.

Source : Reuters