Black Friday Sees Dollar Slide, as Traders Bet on Interest Rates Hitting Ceiling

The U.S. dollar fell as investors anticipated a peak in U.S. interest rates, while the Japanese yen strengthened due to rising consumer prices. Expectations that the Federal Reserve may halt rate hikes and start cutting them next year contributed to the dollar index’s decline, potentially its weakest monthly performance in a year. Analysts predict that the Federal Reserve and the European Central Bank may cut rates around mid-2023, with the Bank of England possibly leading rate cuts as early as May.