TOKYO (Reuters) – The dollar wobbled in thin trading on Friday, on track for losses against most rivals in a holiday-shortened week as it remained under pressure on the Federal Reserve’s cautious view on low U.S. inflation
U.S. markets were closed for the Thanksgiving holiday on Thursday, which was also a national holiday in Japan.
The dollar skidded on Wednesday after minutes from the Fed’s latest policy meeting showed some policymakers fretting over stubbornly weak inflation. That led some to question expectations of hikes in 2018.
The core personal consumption expenditures price index has consistently fallen short of the central bank’s 2 percent target for over five years, even as the Fed has moved toward normalizing policy.
The index .DXY that tracks the dollar against a basket of six major rival currencies was down 0.1 percent at 93.153 , and 0.5 percent lower for the week.
The euro was steady at $1.1852 EUR=, not far from last week’s one-month high of $1.1862. For the week, it was up 0.5 percent.
The single currency got a boost from European business surveys, which pointed to a strengthening growth outlook for the region. Figures tracking both the services and manufacturing industries in Europe were better than expected.
Sterling edged down 0.1 percent to $1.3290, though it was 0.6 percent higher for the week and remained close to Thursday’s six-week high of $1.3337 ahead of a visit by British Prime Minister Theresa May to Brussels later on Friday for Brexit talks.
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