Dollar dips to end trading week but set for weekly gain
- Euro retreats below $1.04
- Dollar on track for sixth straight weekly gain
- Yen poised to snap nine-week losing streak
NEW YORK, May 13 (Reuters) – The dollar slipped on Friday as a rally in equities contributed to a risk-on mood, but was still set for a sixth straight week of gains as investors remained concerned about slowing global growth and Federal Reserve policy tilting the United States into a recession.
High inflation and the Fed’s rate hike path have fueled worries of a policy error that could cause recession or a stagflation scenario of slowing growth and high prices. Readings this week showed some signs that inflation was beginning to ebb, although at a slow pace.
The dollar showed little reaction on Friday to data showing U.S. import prices were unexpectedly flat in April as a decline in petroleum costs offset gains in food and other products, a further sign that inflation has probably peaked. read more
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