Dollar is losing strength with the expectation that the US interest rate hike will end soon

The dollar fell to near a two-month low against major currencies on Friday, while the euro hovered near a one-year high, as dealers’ expectations of an imminent end to the US interest rate hike cycle increased amid signs of slowing inflation.

Data from the US Labor Department on Thursday showed the producer price index fell by the most in nearly three years last month, a day after inflation data pointed to moderation in consumer prices.

The dollar fell again after Thursday’s data and its index fell to a two-month low of 100.84 in the previous session.

It scored 100.95 in early Asian trading on Friday, and is on track to record a weekly decline of more than 1%, the largest decline since January.

The euro rose 0.07% to $1.1055, after climbing to a one-year high of $1.1068 on Thursday.

The pound sterling was also close to its highest level in 10 months, and was last recorded at $1.2526.

The Australian dollar remained supported and reached around $0.6788 on Friday thanks to positive Chinese data as well as the strong March employment report in Australia. The Australian and New Zealand dollars are often used as a liquidity alternative to the Chinese yuan.

The New Zealand dollar also rose 0.13% to $0.6305 in Asian trading.

The Japanese yen increased slightly to 132.44 per dollar, while the offshore yuan rose about 0.1 percent to 6.8635 per dollar.