Dollar is falling on expectations that the US interest rate will not be raised this month

The dollar is on track for its biggest weekly loss since mid-January on Friday, with investors predicting that the Federal Reserve will not raise interest rates this month, undermining appetite for the greenback among buyers of other currencies.

The US Senate’s approval of a bill to suspend the debt ceiling and avoid a catastrophic default removed one of the pillars of support for the safe-haven dollar.

The Australian dollar rose after an increase in the minimum wage boosted bets that the central bank would raise interest again next week.

The dollar index, which tracks the performance of the greenback against a basket of six currencies, fell 0.8% this week, its biggest weekly loss since mid-January. In the latest trading, it decreased by 0.1 percent.

The dollar rose against the yen, after incurring the longest daily losing streak against the Japanese currency since November, after four days of decline. The dollar, in the latest trading, rose 0.1 percent to 138.89 yen.

The euro settled at $1.0769 after reaching a one-week high of $1.07685 on Thursday.

The Australian dollar rose 0.68% to $0.662, its strongest performance since May 24.