Dollar slides on bets of more Federal Reserve rate cuts — Reuters

Reuters reports the dollar is sliding on Friday as the US economic data release has fueled expectations of more monetary easing by the Federal Reserve (Fed).

The US producer price index fell in April, prompting traders to raise bets on two Fed rate cuts this year. Markets are now pricing in a 56-basis-point reduction by December, up from 49 points expected the day before, Reuters says.

Meanwhile, the US currency dropped against the South Korean won amid reports that Washington and Seoul were discussing foreign exchange. Strategists at Convera say speculation is growing again in the market about President Donald Trump's intention to weaken the dollar. During trade talks, the US leader may pressure other governments to allow their currencies to strengthen, the company notes.

Against a basket of currencies, the dollar fell to 100.6. Yet, the greenback is on track for a weekly gain of 0.3% due to a sharp rise of 1.3% on Monday, Reuters adds.