The dollar faced uncertainty on Friday, heading towards a weekly decline as investors braced for U.S. economic data following a government reopening. Asian currency markets were active, with notable movements in the British pound and South Korean won, and the onshore yuan hitting a year high.
Despite a hawkish shift in U.S. rate expectations and less confidence in a December rate cut, the dollar weakened against the euro, leaving it just above $1.16. The Swiss franc also held strong near a three-week high.
The dollar index saw a 0.45% weekly drop. Upcoming U.S. economic data could lead to revised policy expectations amid concerns about inflation and labor stability, creating challenging market conditions worldwide.
