"Inflation Eases, Dollar Hits 15-Month Low Amid Rate Peak Speculation"

The US dollar is near a 15-month low and on track for its biggest weekly decline since November as softening US inflation data strengthens expectations that the Federal Reserve is nearing the end of its rate hike cycle. The dollar index is down 2.4% for the week, its largest weekly decline in eight months. While markets are still pricing in a 95% chance of a 25 basis point hike from the Fed later this month, investors have been betting on a turnaround in the dollar for months. The euro reached a fresh 16-month peak against the dollar, while the Swedish crown and Australian dollar weakened. The Japanese yen is on course for its best week against the dollar since January.