The dollar is heading for the largest weekly decline in nearly 4 months

The dollar is heading for its biggest weekly decline in nearly four months after traders cut their expectations for a US interest rate hike amid indications that the Federal Reserve may slow or halt the monetary tightening cycle in the second half of the year.

The dollar index, which measures the performance of the greenback against a basket of six major currencies, fell to 101.43 for the first time since April 25. On a weekly basis, the index fell 1.3 percent, the largest weekly decline since the first week of February.

The euro rose against the dollar to the highest level in a month and was trading at 1.0765 dollars. The British pound settled at 1.2666 dollars.

The digital currency did not benefit from the improvement in sentiment for risk, and it fell 1.62 percent to about $ 28,710, continuing its gradual decline this week from the level of $ 30 thousand.

The risk-sensitive Australian dollar rose 0.6 percent to $0.7142, while the New Zealand dollar rose 0.65 percent to $0.6520.