Dollar heads for weekly loss as longs lose faith

Dollar heads for weekly loss as longs lose faith

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Dollar heads for weekly loss as longs lose faith

SYDNEY: The dollar headed for its largest weekly fall in eight months on Friday as investors trimmed long positions and deemed, for now, that several U.S. rate hikes this year are fully priced in. In a week where data showed U.S. inflation at its hottest since the early 1980s, selling has forced the greenback through key support against the euro in particular and traders seem content to lighten their bets until a clearer trend emerges. The dollar index is down about 0.9% for the week, on course for its largest weekly percentage fall since last May and set to halt a rally that has lasted about six months. The index last held at 94.849 in quiet Asia trade. The euro is up more than 0.8% for the week so far, and has punched out of a range it held since late November. At $1.1457 it doesn't face strong chart resistance until $1.1525. The yen has rallied 1% over the week, and pushed back through 115 to the dollar, last holding at 114.13. The moves have come while U.S. interest rate futures have all but locked in four hikes this year. But longer-end yields have fallen slightly on hawkish comments from

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