A gauge of the dollar consolidated Thursday's gain on the last trading day of the year. The Swiss franc, which has posted the strongest gain against the greenback among the Group-of-10 year-to-date, also outperformed on Friday.
The Bloomberg Dollar Spot Index rose 0.1%; the index has lost 2.7% this year, on track for its worst annual loss since 2020 on expectations the Federal Reserve will cut interest rates aggressively in 2024.
The dollar is "ending the year in a poor state," Alvin T. Tan, head of Asia FX strategy at RBC Capital Markets, wrote in a note.
"It's the last trading day of 2023, and volumes are likely to be very light ahead of the extended New Year's day weekend," he added.
Swiss franc resumes rally vs. dollar after closing lower on Thursday.
USD/CHF falls 0.8% to 0.8370; pair is set for its biggest yearly loss since 2010.
Data released Friday showed that the SNB slightly reduced its sales of foreign exchange — and buying of its own currency — in the third quarter.
EUR/USD is little changed at 1.1065; Spanish inflation remained steady at the end of 2023, tempering a likely euro-zone pickup that may embolden policymakers to keep pushing against bets on imminent interest-rate cuts.
The krone jumped against the dollar and the euro in light trading after the Norges Bank announced it will cut its purchases of foreign currency in January.
EUR/NOK falls as much as 0.8% to 11.1941, its biggest drop in a week, before paring the move.
USD/NOK falls as much as 0.7% to 10.1222.
USD/JPY rose 0.2% to 141.70; pair is set for a third year of gains amid a wide interest-rate gap between the Bank of Japan and the Fed.
Source : Bloomberg
