The dollar index traded around 106.1 on Friday and was set to end the week lower, weighed down by growing expectations that the Federal Reserve was done with the tightening cycle. The dollar also tracked Treasury yields lower, with the benchmark 10-year US yield hitting a three-week low near 4.6% on Thursday. The US central bank held its policy rate steady on Wednesday, but left the door open to a further rate increase amid persistently high inflation and economic resilience. Still, markets are betting that the central bank will not raise rates further as the impact of previous hikes on the economy have yet to materialize. On the data front, the latest weekly jobless claims came in above forecasts for the second straight week, pointing to signs of a cooling labor market. Investors now look ahead to the October jobs report for further guidance.
