TOKYO: The dollar remained on the back foot on Friday as global trade frictions and signs of weakness in the US economy supported the case for more rate cuts by the Federal Reserve. The dollar index is set for its biggest weekly drop in almost three months as an extended shutdown of the US government blocked the publication of key economic data. The yen held on to gains after Bank of Japan Governor Kazuo Ueda spoke about factors that could lead to a rate increase this month.
\n ompounding concerns about trade, Fed independence and the US shutdown are making the greenback vulnerable to the debasement trade, where investors seek assets that can\u2019t easily be devalued, said Pepperstone research strategist Dilin Wu. \u201cIt\u2019s really hard to find a bullish scenario for the dollar index,\u201d said Wu. \u201cInstead of betting on any currency by a single sovereign credit, people are rushing into gold, cryptocurrency, and other assets as a risk hedge.\u201d The dollar index, which measures the greenback against a basket of currencies, was little changed at 98.23 and remained on course for a 0.6% slide this week – the biggest five-day retreat since late July. Against the Japanese yen, the dollar weakened 0.2% to 150.12. Web Desk
\nBOJ Governor Ueda said in Washington on Thursday that the central bank remains ready to increase its key policy rate if the likelihood of its growth and price forecasts materializing increases.
\nBOJ Deputy Governor Shinichi Uchida is due to speak later on Friday.
\nThe euro added 0.1% at $1.1701, while sterling also tacked on 0.1% to $1.3446.
\nFed Governor Christopher Waller said he is on board with another interest rate cut at the US central bank\u2019s meeting later this month because of the mixed readings on the state of the job market.
\nStephen Miran, the Fed\u2019s newest governor and an economic advisor to US President Donald Trump, reiterated support for more aggressive rate cuts at upcoming meetings than the one favored by some of his colleagues.
\nMiran\u2019s seat expires at the end of January, while Fed Governor Lisa Cook remains in place as the case over Trump\u2019s attempt to fire her winds through the courts.
\nThe Fed\u2019s Beige Book offered little support to US rates, pointing to emerging signs of economic weakness, including rising layoffs and reduced spending among middle and lower-income households.
\nTrade frictions between Beijing and Washington heated up overnight, with China accusing the US of stoking panic over its rare earth controls, rejecting a White House call to roll back the curbs.
\nIn cryptocurrencies, bitcoin gained 0.6% to $108,534.66, and ether rose 1.8% to $3,919.71.<\/p>\n","protected":false},"excerpt":{"rendered":"
TOKYO: The dollar remained on the back foot on Friday as global trade frictions and signs of weakness in the US economy supported the case for more rate cuts by the Federal Reserve. The dollar index is set for its biggest weekly drop in almost three months as an extended shutdown of the US government […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-509304","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n