The euro fell 0.21% to $1.1191 and was set for a 0.43% weekly loss as French bond concerns and unrest weighed on the currency. The yen was on track for a 0.7% weekly gain, while the dollar index was little changed for the week.
The euro fell on Friday and was on track for a weekly loss against the dollar and yen as a selloff in French government bonds pushed the country’s debt risk premium to its highest level since the euro zone sovereign debt crisis in 2011. Concerns over unrest and France’s budget problems also weighed on the currency, with Moody’s expected to review the country’s debt rating on Friday.
The yen was headed for a weekly gain against the dollar after benefiting from safe-haven flows following Thursday’s selloff in AI stocks. It weakened 0.1% to 156.9 per dollar on Friday but was set for a weekly increase of around 0.7%, its best week since mid-September. The dollar index rose 0.25% to 101.82 and was little changed for the week.
Traders are looking to next week’s policy meetings at the Federal Reserve, European Central Bank and Bank of Japan; all three are expected to leave rates unchanged. Euro zone private-sector growth slowed in October to its weakest pace in four months, while Japan’s core consumer inflation exceeded the central bank’s 2% target in September for the first time in nine months. Traders priced in 66% odds of an ECB hike and 61% odds of a BOJ hike in December.
