WASHINGTON (dpa-AFX) - The U.S. dollar traded weak against its major rivals on Friday, continuing to slide amid hopes the Federal Reserve will slow down the pace of its monetary tightening in the coming months.
The Labor Department's report on Thursday showing a smaller than expected increase in U.S. consumer price inflation in the month of October has raised optimism that the U.S. central bank will raise interest rate by a smaller 50 basis points next month.
CME Group's FedWatch Tool is currently indicating an 80.6% chance the Fed will raise rates by 50 basis points next month compared to the recent 75 basis point rate hikes.
In economic news today, a report from the University of Michigan showed U.S. consumer sentiment has pulled back much more than expected in November after seeing modest improvements in recent months.
The report said the consumer sentiment index slumped to 54.7 in November after inching up 59.9 in October. Economists had expected the index to edge down to 59.5.
The dollar index, which fell to 106.28, is at 106.42, down 1.65% from the previous close.
Against the Euro, the dollar is trading at 1.03565, compared with 1.0209 on Thursday.
The dollar is trading at 1.1834 against Pound Sterling, easing from 1.1715.
Against the Japanese currency, the dollar is weak, fetching 138.82 yen a unit, as against Thursday's close of 140.97 yen.
The dollar is weak at 0.6705 against the Aussie, drifting lower from 0.6618.
Against Swiss franc, the dollar is down fetching CHF0.9412 a unit, after having closed at CHF0.9633 on Thursday.
The dollar is down against the Loonie as well, dropping to 1.3255 from 1.3320.
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