Dollar Faces Fourth Weekly Decline Amid U.S. Rate Cut Speculations and China's Stimulus Push

The dollar stumbled towards a fourth consecutive week of declines as investors analyzed U.S. data and China's economic measures. U.S. data showed a robust labor market and corporate profit growth, while investors anticipated significant rate cuts. Meanwhile, China's stimulus activities buoyed risk-sensitive currencies.

The dollar wobbled on Friday, heading towards its fourth straight week of declines as investors reviewed U.S. economic data to understand the pace of upcoming interest rate cuts, while China's stimulus measures supported risk-sensitive currencies.

Thursday's data revealed that the U.S. labor market remains healthy, with corporate profits growing robustly in the second quarter, suggesting a positive economic outlook. Still, the dollar remains weak with traders anticipating 73 basis points of easing by year-end, including a potential half-percentage-point cut, as indicated by CME Group's FedWatch Tool.

Recently, the Federal Reserve shifted focus from inflation to maintaining a healthy labor market, resulting in a significant 50 basis point rate cut last week. The dollar index, which compares the greenback to several major currencies, was at 100.67 on Friday, close to the 14-month low of 100.21 reached on Wednesday, marking its fourth consecutive week of decline.

(With inputs from agencies.)