The dollar was on track on Friday for one of its steepest weekly falls versus major currencies this year, while the yen strengthened sharply to trade below 150 per dollar as concerns grow about the worsening global economic outlook.

Cooler-than-expected U.S. inflation data on Tuesday helped reset market expectations for how quickly the U.S. Federal Reserve will cut rates and has weighed on the dollar, which is on track for a 1.6% weekly fall - its biggest since mid-July.

The dollar index was down 0.3% on the day at 104.1, while the euro edged up 0.1% to $1.08665 after data confirmed year-on-year inflation in the euro zone slowed sharply in October.

The yen - which has been punished broadly by dollar strength - broke the 150 mark versus the dollar for the first time in nearly two weeks. The dollar lost as much as 1% versus the Japanese currency and was last down 0.9% at 149.320 yen.

Weaker-than-expected retail sales figures in Britain on Friday added to a slew of negative indicators this week, with the pound edging up 0.2% to $1.2435.

Sluggish data globally has raised concerns about economic prospects, but also suggests central banks may be winning in their fight against soaring prices.

Futures markets were pricing in about 100 basis points (bps) of cuts to U.S. interest rates next year on Friday, moves that have contributed to dollar weakness.

Source : Reuters