26.06.202602:19:14UTC+00Dollar Set for Weekly Gain

The dollar index stabilized around 101.5 on Friday after coming under pressure in the previous session, and remained on course for a weekly gain as markets continued to anticipate additional Federal Reserve rate hikes later this year. On Thursday, the greenback softened after the latest US PCE inflation report broadly matched expectations. While inflation is still well above the Fed’s 2% target, the figures helped ease fears of a sharper-than-expected acceleration in price growth. Even so, markets are currently pricing in about an 80% probability of a Fed rate increase in December following last week’s hawkish pause, with the odds of a September move standing at roughly 63%. New York Fed President John Williams also said on Thursday that inflationary pressures are likely to ease this year but will remain uncomfortably high.