This Friday, the dollar headed for its biggest weekly drop against the euro in two and a half months. Other currencies such as the British pound, the Indian rupee, and the Japanese yen remained broadly stable.

The euro is up 0.9% against the dollar this week, broke the resistance around $1.0855, and traded as high as $1.0895 in the wake of the slowdown in US inflation. It was the last one at $1.0861

The dollar sinks as the slowdown in US inflation reinforces expectations of lower rates

The Australian and New Zealand dollars are each up more than 1% against the US dollar this week, with the kiwi up 1.7% and looking forward to its best week of the year.

At $0.6675, the Aussie was ejected from a four-month high as a surprise rise in unemployment figures seemed to reduce any risk of a further rate hike.

The New Zealand dollar last held steady at $0.6120 as traders look to next week's central bank meeting, where the official rate is expected to remain at 5.5%.

The dollar index and US yields were up, in contrast to the movements that occurred after the release of US inflation data. Asian currencies were down after Thursday's rally.

Sterling was on track to make a weekly gain against the dollar on Friday, as traders turn to key data released next week that could indicate how quickly the Bank of England could cut interest rates. The pound fell slightly by 0.1% on the day & agrave; $1.2656, but was on track for a 1% weekly gain. Compared to the euro, it gained 0.1% to 85.70

The Indian rupee is expected to remain in a tight range on Friday due to a recovery in the dollar index after the sell-off fuelled by US inflation data, while portfolio and business flows will be the focus of attention. The rupee did not benefit from the massive selling of the dollar on Thursday after weaker-than-expected US inflation data.

The Japanese yen remained broadly stable at 155.48. In cryptocurrency markets, bitcoin is up 6.6% this week to $65,343