Dollar Weakens Amid Global Economic Concerns:
The dollar experienced its second-largest weekly decline against major currencies this year, dropping below 150 yen. This decline was fueled by worries about the global economic outlook, with the yen strengthening sharply. Cooler-than-expected U.S. inflation data increased expectations of a Federal Reserve rate cut, potentially in the first quarter of the coming year.
Dollar Index Hits September Lows: The dollar index, measuring the greenback against six major currencies, reached its lowest point since September 1. Simultaneously, the yield on the 10-year Treasury notes fell to a two-month low of 4.379%, driven by concerns about the weakening global economy and potential rate cuts by the Federal Reserve.
Global Economic Concerns Impact Central Banks' Fight Against Inflation: Sluggish global data raised worries about economic prospects but also suggested that central banks might be succeeding in curbing soaring prices. The focus on inflation as a market driver has implications for the strategies of major central banks.
Oil Prices Rebound as Short Positions Are Covered: Oil prices rebounded over 4% from a four-month low as investors covering short positions took profits. Additionally, U.S. sanctions on certain Russian oil shippers provided support. Despite a year-long reduction in active drilling rigs by U.S. oil producers, the oil rig count rose by six, the most significant increase since February.
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