Dollar slips as Fed rate-hike expectations ease, but heads for strongest month since July 2025

The dollar weakened against major currencies on Friday as markets scaled back expectations for further Federal Reserve rate hikes, a shift shaped by recent economic data and lower oil prices. Even so, the greenback was still set to end the week higher and log its strongest monthly performance since July 2025. Inflation gauges came in as forecast, while falling energy costs helped slow the pace of expected European Central Bank tightening even as the Fed was still seen raising rates.