The dollar edged lower as a rise in US weekly jobless claims added to signs that the Federal Reserve may be done with rate hikes in the current cycle.
The Bloomberg Dollar Spot Index fell 0.1%, taking the weekly drop to 1.3%. Data on Thursday showed continuing applications for US unemployment benefits rose to the highest level in almost two years in the week ended Nov. 4. A separate report on the same day also showed that US factory production fell in October by more than expected.
"A meaningful USD reversal into year's end is at hand, underpinned by a cluster of key US data points – Oct jobs and CPI - that speak to slowing growth momentum and a more entrenched disinflation trend," Richard Franulovich, head of currency strategy at Westpac Banking Corp. in Sydney wrote in a note.
Treasury yields held Thursday's decline. The 10-year yield was little changed at 4.43% after closing 10 basis points lower in the last session.
"From here expectations could build into the mid-Dec FOMC for a more formal declaration that the tightening cycle is over," according to the Westpac note.
Oil entered a bear market, trading around $73 a barrel after dropping more than 20% from a high in September, weighed by concerns over a supply glut.
AUD/USD fell 0.1% to 0.6463 while NZD/USD lost 0.2% to 0.5957.
USD/JPY down 0.2% to 150.49.
Source : Bloomberg
