Global Currencies Unsettled Amid Economic Data Waves

The dollar hovers near a two-month high versus other major currencies, influenced by recent U.S. inflation and jobs data. British economic growth offered little support to the pound. Currency movements remained subtle as traders analyzed global economic developments, including French politics and China's fiscal policy expectations.

In the international currency markets, the dollar paused near a two-month high against a collection of global currencies on Friday. Traders immersed themselves in the latest figures on inflation and employment, as British economic growth failed to buoy the pound from one-month lows.

While movements across major currencies were relatively restrained, the euro declined by 0.06% to $1.10931. Meanwhile, the pound remained steady at $1.3058, and the dollar saw a 0.3% rise against the Japanese yen, reaching 149.02.

The dollar's performance left the dollar index at 102.95, taking a momentary break after its recent ascent past 103 on Thursday. This rise marked its peak since mid-August, driven by downgraded bets on substantial rate cuts by the Federal Reserve at its upcoming meetings for the year.

Recently released U.S. core consumer inflation data indicated a 0.3% rise in September, exceeding expectations slightly. The news suggested a slowdown in the Federal Reserve's efforts to combat inflation, yet was countered by heightened weekly jobless claims.

Additionally, Britain's economy recorded growth in August following a period of stagnation, offering some respite to Finance Minister Rachel Reeves ahead of the Labour government's upcoming budget.

The stable pound showed minimal change against the euro. Traders are also closely monitoring French politics after Thursday's presentation of the 2025 budget proposal, which confronts a significant fiscal deficit through prospective spending cuts and tax hikes.

(With inputs from agencies.)