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FOREX-Dollar set for third straight weekly gain after inflation data, Fed rate cut

BY Reuters | ECONOMIC | 12/20/24 09:13 AM EST

(Updates with prices throughout, adds PCE data)

By Chibuike Oguh

NEW YORK, Dec 20 (Reuters) - The U.S. dollar retreated from a two-year high on Friday, but was heading for its third consecutive week of gains, with data showing a slowdown in inflation two days after the Federal Reserve delivered a cut to interest rates.

The dollar was down 0.42% against a basket of six other currencies at 107.97, but earlier in the session it rose as high as 108.54 - its highest level since November 2022.

Commerce Department data on Friday showed the personal consumption expenditures (PCE) price index - which is the Fed's preferred inflation gauge - rose 0.1% in November after an unrevised 0.2% gain in October.

But in the 12 months through November, the PCE price index advanced 2.4% compared with a 2.3% increase in October.

(Reporting by Chibuike Oguh, Rae Wee and Greta Rosen Fondahn; Editing by Jacqueline Wong, Jamie Freed, Hugh Lawson, William Maclean)

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