Investing.com – Most Asian currencies were little changed on Friday and posted modest losses throughout the week, while the dollar stabilized near a yearly high and looked set for a sturdy week as markets eased bets on lower interest rates in USA.

The dollar was headed for a sixth straight week of gains, extending the rally following Donald Trump’s election victory last week. Less dovish statements from the Federal Reserve and sturdy inflation readings in the US strengthened the strength of the dollar.

This trend had a sturdy impact on most Asian units, and average macroeconomic readings from China and Japan deepened the negative sentiment on Friday.

Dollar sturdy as bets on inflation-related interest rate cuts are withdrawn, Powell comments

Both indexes increased by 0.1% on Friday and were close to the annual peak from the beginning of the week.

The dollar rose 1.6% to 2% this week, the best week since slow September.

The dollar’s gains were initially fueled by Trump’s election victory, with expansionary policies under his administration expected to lead to higher inflation in the long term.

In the near term, stickiness and inflation readings have raised doubts about future interest rate cuts by the Federal Reserve, especially as Chairman Jerome Powell said the resilience of the U.S. economy gave the central bank more time to consider cutting interest rates.

His comments have investors rapidly retreating from expectations of a 25 basis point cut in December.

Japanese yen is brittle, USDJPY exceeds 156 after delicate GDP

On Friday, the Japanese yen weakened further, with the pair exceeding 156 yen and reaching its highest level in over three months.

Third quarter data showed that economic growth in Japan slowed sharply compared to the previous quarter. While it remained sturdy, growth was affected by weakness in other sectors of the economy, especially exports and investment.

In the third quarter, this indicator also increased less than expected, indicating a slowdown in inflation growth in this quarter.

Friday’s data raised hopes that the delicate economy would prevent the Bank of Japan from further interest rate increases, which bodes poorly for the yen.

Broader Asian currencies were brittle and headed for weekly losses. The Chinese yuan pair rose 0.1% and was expected to gain for the seventh straight week.

The Chinese did not disappoint expectations, but in October, during the Golden Week, they increased more than expected. However, overall economic conditions in the country remain delicate and recent stimulus measures have largely disappointed markets.

Attention is currently focused on the People’s Bank potentially cutting interest rates next week.

Concerns about China caused the Australian dollar to weaken, with the pair hovering around a three-month low.

The Singapore dollar pair fell 0.1%, while the South Korean won pair fell 0.2%. Both currencies were heading for losses this week.

The Indian rupee pair has strengthened after hitting record highs this week.