Dollar Set for Weekly Fall as Markets Reassess Fed Rate Hike Bets

U.S. Dollar and Euro banknotes are seen in this illustration taken on July 17, 2022. Dado Ruvic/Reuters

LONDON—The dollar rose on Friday but was still set for a weekly decline as traders looked for signs of U.S. inflation peaking.

U.S. inflation figures on Wednesday and Thursday were lower than expected, boosting riskier assets such as equities and weakening the dollar, as markets interpreted the data as indicating the Fed could be less aggressive in rate hikes.